Electricity Act 2023 Ushers in New Era: 15 States Assume Regulatory Power
In a landmark development for Nigeria's power sector, fifteen states have officially taken over the regulatory authority for their electricity markets, a significant decentralization driven by the Electricity Act of 2023. This transition, coordinated by the Nigerian Electricity Regulatory Commission (NERC), empowers subnational governments to manage their local power landscapes, including licensing, tariff setting, investment promotion, and consumer protection. The affected states are Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, and Bayelsa [3, 4, 6].
This shift means that electricity consumers in these states will now direct their complaints and queries to their respective State Electricity Regulators (SERs) instead of the NERC. SERs are now the primary point of contact for issues related to service quality, billing disputes, and other distribution-related matters within their jurisdictions [3]. The Electricity Act 2023, which moved electricity from the exclusive legislative list, provides the legal framework for states to establish and regulate their own intra-state electricity markets [6].
The transition process for these states has been ongoing, with some completing their regulatory takeovers as early as October 2024. Lagos, Nigeria's largest electricity market, transitioned in June 2025, marking a significant milestone [4]. While these states now exercise autonomy over their intrastate electricity markets, NERC retains oversight of interstate electricity activities, including generation, transmission, and multi-state distribution operations [6].
The reform is anticipated to accelerate market development by bringing regulation closer to consumers and aligning policies with local economic realities. It is also expected to unlock subnational investments in power generation, distribution, and off-grid solutions [4]. For states that have not yet established their own regulatory bodies, NERC continues to manage electricity tariffs and oversee distribution companies until they are ready to assume full control [3].
This shift means that electricity consumers in these states will now direct their complaints and queries to their respective State Electricity Regulators (SERs) instead of the NERC. SERs are now the primary point of contact for issues related to service quality, billing disputes, and other distribution-related matters within their jurisdictions [3]. The Electricity Act 2023, which moved electricity from the exclusive legislative list, provides the legal framework for states to establish and regulate their own intra-state electricity markets [6].
The transition process for these states has been ongoing, with some completing their regulatory takeovers as early as October 2024. Lagos, Nigeria's largest electricity market, transitioned in June 2025, marking a significant milestone [4]. While these states now exercise autonomy over their intrastate electricity markets, NERC retains oversight of interstate electricity activities, including generation, transmission, and multi-state distribution operations [6].
The reform is anticipated to accelerate market development by bringing regulation closer to consumers and aligning policies with local economic realities. It is also expected to unlock subnational investments in power generation, distribution, and off-grid solutions [4]. For states that have not yet established their own regulatory bodies, NERC continues to manage electricity tariffs and oversee distribution companies until they are ready to assume full control [3].
This article and image are AI generated. For informational purposes only.