The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has announced the transfer of regulatory oversight of Ogun State’s electricity market to the newly established Ogun State Electricity Regulatory Commission (OGERC).
This decision follows a similar move granting regulatory oversight to the Lagos State Electricity Regulatory Commission and is in line with the amended Constitution of Nigeria and the Electricity Act of 2023. The Act allows states to regulate their intrastate electricity markets, provided they notify NERC and meet specific conditions.
NERC confirmed the development in a statement posted on its official X handle on Monday, emphasizing that the process aligns with federal laws. “The Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Ogun State from the commission to the Ogun State Electricity Regulatory Commission,” the statement read.
Under the Electricity Act 2023, NERC retains authority over interstate and international electricity generation, transmission, and trading but mandates states to notify and meet legal requirements before assuming control of their local markets.
Steps for Transition
The transition process includes key directives for stakeholders to ensure a smooth handover. NERC outlined that electricity distribution companies—Eko Electricity Distribution Company (EKEDP), Ikeja Electric Plc (IE), and Ibadan Electricity Distribution Company (IBEDC)—must establish subsidiaries to handle intrastate supply and distribution in Ogun State.
The provisions include:
• Subsidiary Incorporation: EKEDP, IE, and IBEDC are required to form subsidiaries—EKEDP SubCo, IE SubCo, and IBEDC SubCo, respectively—within 60 days from December 24, 2024.
• Licensing: The subsidiaries must apply for and obtain licenses from OGERC for intrastate operations.
• Completion Deadline: All transitions must be finalized by June 23, 2025.
Decentralization of Nigeria’s Electricity Sector
This development highlights Nigeria’s ongoing decentralization of regulatory authority in the electricity sector, empowering states to manage their energy needs independently. By granting Ogun State the autonomy to oversee its electricity market, the federal government aims to promote local accountability and improve efficiency in electricity supply and distribution.
For further details, NERC has directed stakeholders to access the full Order on its official website.
