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NERC Transfers Regulatory Oversight Function To NSERC
The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight for the electricity market in Niger State to the Niger State Electricity Regulatory Commission (NSERC).
This development aligns with the provisions of the Federal Republic of Nigeria’s amended Constitution and the Electricity Act 2023, which empowers states to regulate their electricity markets.
NERC made the announcement via its Official X (formerly Twitter) Handle at the Weekend.
While NERC remains the central regulator overseeing inter-state and international electricity generation, transmission, supply, trading, and system operations, this transfer marks a significant step towards localized regulation of electricity markets within states.
The commission said the transfer order outlines specific directives to the Abuja Electricity Distribution Company (AEDC) and the Ibadan Electricity Distribution Company (IBEDC), which currently operate within Niger State.
It said, “AEDC is required to establish a subsidiary, AEDC SubCo, to handle intrastate electricity supply and distribution in Niger State.
“The incorporation of AEDC SubCo must be completed within 60 days from January 10, 2024.
“AEDC SubCo must apply for and obtain an intrastate electricity supply and distribution license from NSERC”.
On the Ibadan Electricity Distribution Company directive, it stated that “IBEDC must establish a subsidiary, IBEDC SubCo, to take over intrastate electricity supply and distribution responsibilities in Niger State.
“The incorporation of IBEDC SubCo must also be finalized within 60 days from January 10, 2024.
“IBEDC SubCo is required to apply for and secure a license from NSERC for its operations in Niger State”.
The transfer process, it said, is to be fully implemented by July 9, 2025, ensuring a seamless transition of regulatory oversight to NSERC.
NERC also revealed that the Niger State Government has fulfilled the necessary prerequisites and formally notified NERC, requesting the transfer of regulatory authority.
“This move reflects Nigeria’s broader effort to decentralize electricity regulation and improve efficiency and responsiveness in the management of state-level electricity markets”, it stated.