Paragraph 14(b) Part II of the Second Schedule of the 1999 Constitution of the Federal Republic of Nigeria and Section 2(2) of the Electricity Act of 2023 (“EA”) empowers states in Nigeria to develop and regulate their electricity markets subject to the State of House of Assembly passing a law to that effect. This allows States to regulate electricity operations within their jurisdiction, including power generation, transmission and distribution.
Essentially, Nigeria has evolved from having a central regulated electricity sector to a two-tier sector comprising the Federal Electricity Market (FEM) comprising the various generation companies (GenCos) connected to the national grid operated by the Independent System Operator on one hand; and the various State electricity markets supplied either by State-based GenCos or the FEM and State based distribution companies that are regulated by a State regulator on the other hand.
Under the new legal framework, the Nigerian Electricity Regulatory Commission (NERC) regulates the FEM, and a State electricity regulatory authority by whatever name so called (SERC) regulates the State electricity market (SEM). In implementing the transition to a two-tier electricity regulatory regime, the NERC has issued transition orders for the transfer of regulatory oversight over the State electricity markets in the underlisted States that have:
- enacted a law to establish their SEM;
- enacted a law to establish the SERC, and
- have notified NERC that it has carried out (a) and (b) and has requested NERC to transfer regulatory authority of electricity operations in that State to the SERC.
State: Niger
Regulatory Commission: Niger State Electricity Regulatory Commission (NSERC)
Date of Transfer: 10th January 2025
Transition Framework: Abuja Electricity Distribution Company Plc. ((AEDC) and Ibadan Electricity Distribution Company Plc. (IBEDC) are to incorporate subsidiaries “AEDC SubCo” and “IBEDC SubCo” to be responsible for intrastate supply and distribution of electricity in Niger State. AEDC SubCo and IBEDC SubCo are to obtain licences from NSERC.
State: Ekiti
Regulatory Commission: Ekiti State Electricity Regulatory Bureau (“EERB”)
Date of Transfer: 1st May 2024
Transition Framework: Ibadan Electricity Distribution Company Plc. (IBEDC) and Benin Electricity Distribution Company Plc. (BEDC) are to incorporate subsidiaries “IBEDC SubCo” and “BEDC SubCo” responsible for instrastate supply and distribution of electricity in Ekiti State. The subsidiaries are to obtain their operating licences from EERB.
State: Edo
Regulatory Commission: Edo State
Electricity Regulatory Commission (“ESERC”)
Date of Transfer: 21st August 2024
Transition Framework: Benin Electricity
Distribution Company Plc. (BEDC) is to incorporate a subsidiary
“BEDC SubCo” to carry out intrastate supply and
distribution of electricity in Edo State. ESERC will issue BEDC
SubCo its operating licence.
State: Oyo
Regulatory Commission: Oyo State
Electricity Regulatory Commission (“OSERC')
Date of Transfer: 6th August 2024
Transition Framework: Ibadan Electricity
Distribution Company Plc. (IBEDC) has incorporated a subsidiary
IBEDC Energy Solutions Limited (IBEDC-ESL) for the intrastate
supply and distribution of electricity within Oyo State. Pacesetter
will obtain its licence from OSERC.
State: Plateau
Regulatory Commission: Plateau State
Electricity Regulatory Commission (“PSERC”).
Date of Transfer: 13th March 2025
Transition Framework: Jos Electricity Distribution Company Plc. Shall incorporate a subsidiary “JED SubCo” for intrastate supply and distribution of electricity in Plateau State. JED SubCo is to obtain a licence for intrastate supply and distribution from PSERC.
State: Ogun
Regulatory Commission: Ogun State
Electricity Regulatory Commission (“OGERC”)
Date of Transfer: 24th December 2024
Transition Framework: Ibadan Electricity Distribution Company Plc. (IBEDC) Ikeja Electric Plc. and Eko Electricity Distribution Company Plc. are to incorporate subsidiaries ÏBEDC SubCo”, “IE SubCo” and “EKEDC SubCo” for intrastate supply and distribution of electricity in Ogun State. The subsidiaries are to obtain their operating licences from OGERC.
State: Lagos
Regulatory Commission: Lagos State Electricity Regulatory Commission (“LASERC”)
Date of Transfer: 5th December 2024
Transition Framework: Ikeja Electric Plc. and Eko Electricity Distribution Company Plc. to incorporate subsidiaries “IE SubCo” and “EKEDP SubCo” respectively, to carry out intrastate supply and distribution of electricity in Lagos State. The subsidiaries are to obtain their licences from LASERC.
State: Kogi
Regulatory Commission: Kogi State Electricity Regulatory Commission (“KSERC”)
Date of Transfer: 13th September 2024
Transition Framework: Abuja Electricity Distribution Company Plc. is to incorporate a subsidiary “AEDC SubCo” to be responsible for the intrastate supply and distribution of electricity in Kogi State. AEDC SubCo is to obtain its licence from KSERC.
State: Imo
Regulatory Commission: Imo State Electricity Regulatory Commission (“ISERC”)
Date of Transfer: 1st July 2024
Transition Framework: Enugu Electricity Distribution Company Plc to incorporate subsidiary “EEDC SubCo” to carry out intrastate supply and distribution of electricity in Imo State. EEDC SubCo is to obtain its licence from ISERC.
State: Enugu
Regulatory Commission: Enugu State Electricity Regulatory Commission (“EERC”)
Date of Transfer: 1st May 2024
Transition Framework: Enugu Electricity Distribution Company PLC to incorporate a subsidiary “EEDC SubCo” to be responsible for intrastate supply and distribution of electricity in Enugu State. Mainpower Electricity Distribution Limited (MEDL) is the EEDC SubCo and has obtained its licence from EERC.
NERC retains regulatory functions in States that have not established their own markets and regulatory commissions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
