Nigeria: NERC Cedes Akwa Ibom Power Oversight To State

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Akwa Ibom state’s intrastate electricity market to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), NERC said in a statement.

The transfer follows Akwa Ibom’s formal notification and request for the devolution of regulatory authority over electricity operations within the state, in line with amendments to Nigeria’s constitution and the Electricity Act 2023.

NERC directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary, to be known as PHEDC SubCo, which will assume responsibility for electricity supply and distribution within Akwa Ibom.

Under the order, PHEDC must complete the incorporation of the subsidiary within 60 days of Aug. 18, 2026. PHEDC SubCo will then apply to AKSERC for the appropriate licence to undertake electricity supply and distribution within the state.

NERC said all transfers envisaged under the order must be completed by Feb. 17, 2027.

The move places regulation of electricity distribution and supply activities confined to Akwa Ibom under the state regulator, while NERC retains responsibility for federally regulated activities.

The transfer is part of a broader restructuring of Nigeria’s electricity regulatory framework following amendments to the constitution and the Electricity Act, which allow states to regulate electricity markets within their jurisdictions.

Under the new framework, NERC remains responsible for electricity activities that cross state or national boundaries, including interstate and international generation, transmission, supply, trading and system operations. State regulators can oversee intrastate markets where the relevant state has established the required regulatory institutions and formally sought the transfer of authority.

NERC’s order also provides for the separation of PHEDC’s operations in Akwa Ibom through the creation of PHEDC SubCo, which will operate under the regulatory framework established by AKSERC.

The development provides a legal and regulatory framework for electricity distribution and supply in Akwa Ibom as the state assumes responsibility for regulating its intrastate electricity market.