NERC transfers electricity market oversight to Akwa Ibom regulatory commission

The Nigerian Electricity Regulatory Commission (NERC) has officially transferred the regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC). This significant shift, effective August 18, 2026, empowers AKSERC to independently manage key aspects of the state's electricity sector.

Under the new arrangement, AKSERC assumes exclusive responsibility for setting end-user tariffs and overseeing consumer protection and dispute resolution within Akwa Ibom. While NERC retains authority over national grid connections and cross-border transactions, the state commission will now be the primary regulator for intrastate electricity supply and distribution. This move aligns with the state government's fulfillment of legal requirements under the Electricity Act 2023 to control its internal electricity market.

As part of the transition, the Port Harcourt Electricity Distribution Company (PHED) Plc has been ordered to establish a dedicated subsidiary for electricity supply and distribution within Akwa Ibom. This new entity, tentatively named PHED SubCo, must be incorporated within 60 days and apply for a license from AKSERC. PHED is also required to delineate its operational boundaries in Akwa Ibom, identify and transfer relevant assets, liabilities, and employees to the subsidiary, and install boundary meters where its network intersects with neighboring states. The entire transfer process must be completed by February 17, 2027.

NERC's order, NERC/2026/087, underscores the ongoing decentralization of regulatory powers within Nigeria's electricity sector, granting states greater autonomy over their intrastate electricity markets while maintaining national oversight on key infrastructure and generation.

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The Commission exercises regulatory oversight of the Nigerian Electricity Supply Industry (“NESI”) as the apex sectoral regulator in accordance with powers conferred by the Electricity Act 2023 (“EA” or the “Act”)