Seven Nigerian states, Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi, have officially taken over electricity regulation in their territories under the Electricity Act 2023. This marks a major shift from federal control to state-led power governance, with Lagos, Ogun, Niger, Plateau, and Anambra set to follow suit.
Following the Nigerian Electricity Regulatory Commission’s (NERC) disclosure, these states can now generate, transmit, distribute, and regulate electricity independently. This decentralisation seeks to improve energy access and attract investment but has raised concerns over regulatory capacity, consumer protection, and implementation readiness.
While some experts applaud the reform as a step toward true federalism and market competition, others warn that many states lack the technical expertise to manage electricity markets effectively. NERC has issued 11 transfer orders to qualifying states, each with a six-month transition period.
Operators caution that challenges like tariff setting, subsidy decisions, asset delineation, and electricity theft enforcement could overwhelm unprepared states. Concerns also linger over potential regulatory confusion and disparities in service delivery across regions.
Consumer advocates urge states to prioritise capacity building, develop robust frameworks, and avoid regulatory gaps that could harm consumers. Meanwhile, states like Enugu and Lagos are being commended for proactive measures, including establishing regulatory commissions and issuing operational guidelines.
Despite initial teething problems, stakeholders agree the reform presents an opportunity for states to innovate, tailor solutions to local needs, and transform Nigeria’s struggling power sector.
