The Nigerian Electricity Regulatory Commission has formally transferred regulatory oversight of Niger State’s electricity market to the Niger State Electricity Regulatory Commission, in line with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
The decision came after the Niger State Government complied with legal criteria, including a written notification and request for the transfer of regulatory authority, according to a statement released by NERC on X.
The transfer complies with the Electricity Act 2023’s requirements that states that plan to create and oversee intrastate electricity markets report their procedures to NERC.
While regulatory control over Niger State’s electricity market now shifts to NSERC, NERC retains authority over inter-state and international electricity generation, transmission, supply, trading, and system operations.
As part of the transfer, NERC outlined specific directives for the two electricity distribution companies operating in Niger State, AEDC must establish a subsidiary (AEDC SubCo) to take over intrastate electricity supply and distribution in Niger State.
The incorporation of AEDC SubCo must be completed within 60 days of January 10, 2024.
In addition, the subsidiary must apply for and secure the relevant NSERC permits. Similarly, IBEDC must establish a subsidiary (IBEDC SubCo) with the same tasks.
The formation process for IBEDC SubCo must be completed by 60 days of January 10, 2024, with all relevant permits obtained from NSERC.
Both AEDC and IBEDC must complete all related processes by July 9, 2025, to fully implement the transfer of regulatory oversight.
The action highlights NERC’s dedication to decentralizing electricity oversight and enabling state governments to oversee intrastate electricity markets. Comprehensive information about the transfer order is available on NERC’s official website.
This shift represents a crucial landmark in Nigeria’s electricity industry, setting the stage for improved governance and regulatory effectiveness at the state level in Niger State.
