The Federal Government, through the Nigerian Electricity Regulatory Commission, has announced the transfer of regulatory oversight of the electricity market in Ogun State to the newly established Ogun State Electricity Regulatory Commission.
This development, which came days after the commission granted regulatory oversight to the Lagos State Electricity Regulatory Commission, was announced in a statement posted on its official X handle on Monday.
This move follows the amended provisions of the Nigerian Constitution and the Electricity Act of 2023.
NERC said the transfer of regulatory oversight is in line with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act of 2023.
The approval is a comprehensive process that aligns with the requirements outlined in the Electricity Act 2023, which allows states to assume regulatory control over their intrastate electricity markets, provided they notify the NERC and meet the necessary conditions.
The statement read, “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), 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.
“Recall that with the EA 2023, the commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading, and system operations.
“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.
“Based on this, the Government of Ogun 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 Ogun State.”
As part of the transfer, the NERC’s Order outlines a series of steps to ensure a smooth transition of responsibilities to LASERC.
The commission further directed that all transfers envisaged by this order must be completed by 4th June 2025.
Among the key provisions of the Order are, “The transfer Order by NERC has the following provisions: Direct Eko Electricity Distribution Company, Ikeja Electric Plc and Ibadan Electricity Distribution Company to incorporate subsidiaries: EKEDP SubCo, IE SubCo, and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.
“EKEDP, IE, and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo, and IBEDC SubCo within 60 days from 24th December 2024. The sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.
“All transfers envisaged by this order shall be completed by 23rd June 2025. To view the Order, visit the NERC website.”
This shift reflects the increasing decentralisation of regulatory power in the Nigerian electricity sector, with states given more autonomy in managing their local energy markets.
