The Nigerian Electricity Regulatory Commission (NERC) has transferred the regulatory oversight of Niger State’s electricity market to the Niger State Electricity Regulatory Commission (NSERC). This announcement, shared through NERC’s official X (formerly Twitter) handle on Friday, aligns with the 2023 Electricity Act and the amended Constitution, granting states the authority to regulate their electricity markets.
NERC will continue overseeing inter-state and international electricity operations, but this shift to local regulation is a major step towards improving efficiency and responsiveness in managing electricity markets at the state level.
Key Provisions of the Transfer Order:
- AEDC Directives:
- AEDC must set up a subsidiary, AEDC SubCo, to manage intrastate electricity supply and distribution in Niger State.
- AEDC SubCo must obtain an intrastate electricity supply license from NSERC.
- AEDC SubCo’s incorporation must be completed within 60 days, starting from January 10, 2024.
- IBEDC Directives:
- IBEDC must create a subsidiary, IBEDC SubCo, to take on intrastate electricity supply and distribution responsibilities in Niger State.
- IBEDC SubCo must apply for and obtain a license from NSERC.
The transfer process will be completed by July 9, 2025, ensuring a seamless transition. The Niger State Government has already fulfilled all prerequisites and formally requested the transfer of authority from NERC to NSERC.
This initiative follows NERC’s previous transfers of regulatory oversight to regional bodies in 2024, including the Lagos Electricity Regulatory Commission (LASERC), Ekiti State Electricity Bureau (EERB), and others. This decentralization aims to enhance electricity market operations by providing quicker responses and more localized regulation.