NERC transfers regulatory oversight of Niger electricity market to state government

The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of the electricity market in Niger to the state’s electricity regulatory commission.

In a statement on Friday, NERC said the decision is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

According to the statement, NERC will maintain its position as the central regulator, overseeing inter-state/international generation, transmission, supply, trading, and system operations in line with the Electricity Act.

“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator,” NERC said.

“Based on this, the Government of Niger State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Niger State.”

NERC directed the Abuja Electricity Distribution Company (AEDC) to incorporate a subsidiary (AEDC SubCo) to take over the duties of supplying and distributing electricity within Niger state from AEDC.

The commission said the incorporation of the subsidiary must be completed within 60 days starting from January 10, adding that the subsidiary must apply for and obtain a licence for intrastate electricity supply and distribution from Niger State Electricity Regulatory Commission (NSERC).

“Direct Ibadan Electricity Distribution Company Plc (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from IBEDC,” NERC said.

“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 10th January 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from NSERC, among other directives.”

NERC said all transfers envisaged by the order must be completed by July 9.

The commission had previously transferred regulatory oversight of the power market to Oyo, Imo, Edo, Ondo, Enugu, and Ekiti in 2024.

On September 18, 2024, the commission issued an order transferring regulatory oversight of the electricity market in Kogi to the state’s electricity regulatory commission (KSERC).

NERC also issued an order to transfer the regulatory oversight in Lagos to the state electricity regulatory commission on December 19, 2024.

Similarly, on December 30, 2024, the commission transferred oversight of the electricity market in Ogun to the state electricity regulatory commission.