NERC Cedes Akwa Ibom Power Regulation To State

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the intrastate electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).

The transfer, made pursuant to the amended Constitution and the Electricity Act 2023, takes effect as part of the transition from a predominantly centralised regulatory framework to a multi-tier electricity market in which states can regulate electricity activities within their territories.

Under the new arrangement, NERC will retain regulatory responsibility for electricity activities falling under federal and interstate jurisdiction, including interstate and international generation, transmission, supply, trading and system operations.

The Commission has directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary, PHEDC SubCo, which will assume responsibility for intrastate electricity supply and distribution in Akwa Ibom.

According to NERC, PHEDC is required to complete the incorporation of the subsidiary within 60 days from August 18, 2026.

It stated that the new company will subsequently apply to AKSERC for the licence to operate the state’s intrastate electricity supply and distribution market.

NERC also directed that all transfers contemplated under the Order be completed by February 17, 2027.

The transition, the Commission explained, follows provisions of the Electricity Act 2023, which empower states to establish regulatory authorities for electricity markets within their territories, subject to a formal notification and transfer of regulatory authority by NERC.

It added that the development makes Akwa Ibom the latest state to assume control of its intrastate electricity market.

According to NERC, 16 states had fully transitioned to state electricity regulation as of July 22, 2026. Also, Akwa Ibom would be the 17th one if it concluded all the arrangements in February 2027.

NERC has also established a directory of State Electricity Regulatory Commissions to help consumers and investors identify their respective state regulators.

The Commission had earlier transferred regulatory oversight to several states, including Ogun, Edo, Oyo, Kogi, Plateau, Nasarawa, Bayelsa and Anambra, among others, as part of the implementation of the Electricity Act 2023.