The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Niger State to the Niger State Electricity Regulatory Commission (NSERC) to enhance electricity services across the state. This announcement was made on January 10, 2025, via NERC’s social media channels.
This transfer is part of a broader initiative under Nigeria’s amended Constitution and the Electricity Act 2023, which empowers individual states to regulate their own electricity markets. While NERC will continue to oversee inter-state and international electricity operations, this shift represents a crucial step toward localized management of power supply and distribution.
As part of this transition, NERC has issued specific directives to two major electricity distribution companies operating in Niger State: the Abuja Electricity Distribution Company (AEDC) and the Ibadan Electricity Distribution Company (IBEDC).
AEDC is required to establish a subsidiary, known as AEDC SubCo, dedicated to managing intrastate electricity supply and distribution in Niger State.
The company must complete the incorporation of AEDC SubCo within 60 days from January 10, 2024.
Following this, AEDC SubCo will need to apply for and obtain a license from NSERC to operate within the state.
Similarly, IBEDC must create its own subsidiary, IBEDC SubCo, to handle intrastate responsibilities.
The incorporation deadline for IBEDC SubCo is also set at 60 days from January 10, 2024.
Like AEDC, IBEDC SubCo will need to secure a license from NSERC before commencing operations.
The entire transfer process is expected to be fully implemented by July 9, 2025, ensuring that the transition of regulatory authority is smooth and efficient.
This regulatory shift reflects Nigeria’s ongoing efforts to decentralize electricity management. By empowering state-level bodies like NSERC, the government aims to improve efficiency and responsiveness in addressing local electricity needs.
In recent years, NERC has already transferred oversight responsibilities to regional bodies in several other states, including Lagos and Ogun. This trend underscores a commitment to fostering better regulation at the state level and enhancing operational effectiveness across Nigeria’s power sector.
Stakeholders in Niger State can look forward to more localized oversight of their electricity services, potentially leading to improved service delivery and customer satisfaction as this transition unfolds.
