Abia assumes electricity market regulation from NERC in compliance with the Electricity Act 2023, marking a major shift in Nigeria’s power sector structure

Abia assumes electricity market regulation from the Nigerian Electricity Regulatory Commission, NERC, following compliance with the Electricity Act 2023.

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The Nigerian Electricity Regulatory Commission has formally transferred oversight of the electricity market in Abia State to the Abia State Electricity Regulatory Authority (ASERA).

The development was confirmed in an official order released on Wednesday via NERC’s social media channels.

“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 Abia State from the commission to the Abia State Electricity Regulatory Authority,” the commission stated.

Under the Electricity Act 2023, NERC remains the central regulator for interstate and international aspects of power generation, transmission, trading, and system operations.

However, the law empowers states to establish independent regulatory bodies to oversee intrastate electricity operations.

Abia State fulfilled all statutory requirements under the Act by officially notifying NERC and requesting a transfer of authority over its local power market.

In response, NERC approved the transition, allowing ASERA to assume full control over intrastate electricity regulation in the state.

As part of the directive, NERC instructed the Enugu Electricity Distribution Company (EEDC) to incorporate a new subsidiary—EEDC SubCo—that will be responsible for electricity distribution within Abia State.

The sub-company is expected to be incorporated within 60 days of June 25, 2025.

Further, the new entity must obtain a licence from ASERA to legally operate within the state. NERC has mandated that all procedures related to this regulatory shift be completed by December 24, 2025.

“This move decentralises electricity regulation in line with the federal framework and allows states to customise their power sector governance,” the commission added.

Abia’s transition makes it the eighth Nigerian state to take over electricity regulation. Others that have already assumed full regulatory control include Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi.

More states—including Lagos, Ogun, Niger, and Plateau—are expected to complete similar transitions between June and September 2025.

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The development marks a major restructuring of Nigeria’s electricity market, with implications for investor confidence, service delivery, and regional power planning.