The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the intrastate electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
The development follows provisions of the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, as amended, which empower states to establish and regulate electricity markets within their territories.
Under the new framework, NERC retains regulatory responsibility for interstate and international electricity activities, including generation, transmission, supply, trading and system operations.
States seeking to regulate their intrastate electricity markets are required to formally notify NERC and request the transfer of regulatory authority.
In an order issued by the Commission, NERC directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary, to be known as PHEDC SubCo, which will take responsibility for electricity supply and distribution within Akwa Ibom State.
PHEDC is required to complete the incorporation of the subsidiary within 60 days from August 18, 2026.
Following its incorporation, PHEDC SubCo must apply for and obtain an intrastate electricity supply and distribution licence from AKSERC.
NERC said the transfer is intended to give effect to the new regulatory framework for state-level electricity markets established under the amended Electricity Act.
The Commission also directed that all transfers and related processes covered by the order must be completed by February 17, 2027.
The move represents a significant step in the implementation of Nigeria’s decentralised electricity market framework, giving Akwa Ibom State greater regulatory control over electricity activities within its territory while NERC continues to oversee the national and interstate electricity market.
