The Nigerian Electricity Regulatory Commission has officially transferred regulatory oversight of the electricity market in Kogi State to the newly established Kogi State Electricity Regulatory Commission.
This shift follows the state government’s compliance with the legal provisions in the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
In a statement posted on NERC’s official X (formerly Twitter) handle, the commission emphasized the legal basis for the transfer, stating, “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 Kogi State from the Commission to the Kogi State Electricity Regulatory Commission (KSERC).”
While NERC remains the central authority overseeing inter-state and international electricity generation, transmission, and trade, the amended Electricity Act 2023 permits state governments to establish their own regulatory bodies for intrastate electricity markets, provided they meet specific legal requirements and notify NERC.
“The Electricity Act also mandates any state intending to regulate intrastate electricity markets to formally notify NERC of its processes and request the transfer of regulatory oversight,” the statement added.
Kogi State met all necessary conditions and submitted a formal request for the regulatory transfer.
In response, NERC issued an order that outlines the transfer process, including the creation of a new subsidiary by the Abuja Electricity Distribution Company, known as AEDC SubCo, which will manage electricity supply and distribution within the state.
“AEDC shall complete the incorporation of AEDC SubCo within 60 days from 13th September 2024. The sub-company will then be required to apply for and obtain a licence from KSERC for the intrastate supply and distribution of electricity,” NERC highlighted.
The transfer process is expected to be fully completed by 12th March 2025, according to NERC’s directive.
