NERC transfers Akwa Ibom power sector oversight to state regulator

The Nigerian Electricity Regulatory Commission (NERC) has officially transferred the regulatory oversight of the electricity market within Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission. This action marks a significant step in the ongoing decentralization of Nigeria's power sector, as mandated by the amended Constitution and the Electricity Act 2023.

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In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”) has issued an order to transfer regulatory oversight of the electricity market in Akwa Ibom State from the Commission to the Akwa Ibom State Electricity Regulatory Commission.

Under the terms of the transfer order, the Port Harcourt Electricity Distribution Company Plc (PHEDC) is required to establish a dedicated subsidiary. This new entity will assume full responsibility for electricity supply and distribution exclusively within Akwa Ibom State. NERC announced the development via its official X handle on Wednesday, confirming that Akwa Ibom is the latest state to receive such a regulatory transfer.

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With the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

This transfer brings the total number of states that have received regulatory transfer orders to 17. Gombe State was the 16th state to complete this transition in July 2026. The full transition for Akwa Ibom is anticipated to be completed by February 2027. NERC clarified that it retains its role as the central regulator for electricity activities that span across state boundaries, including inter-state and international generation, transmission, supply, trading, and system operations.

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The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.

The Electricity Act 2023 stipulates that states wishing to establish and regulate their own intrastate electricity markets must first implement the necessary legal and institutional frameworks. They must then formally notify NERC and request the transfer of regulatory authority. PHEDC has been given 60 days from August 18, 2026, to incorporate the subsidiary, which will subsequently apply for its operating license.

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PHEDC shall complete the incorporation of PHEDC SubCo within 60 days from 18th August 2026. The subcompany shall apply for and obtain licence for the intrastate supply and di