The Nigerian Electricity Regulatory Commission (NERC) has officially approved the transfer of regulatory oversight of Kogi State’s electricity market to the Kogi State Electricity Regulatory Commission (KSERC). This decision aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
In a statement released on NERC’s official X (formerly Twitter) account on Wednesday, the commission outlined the legal basis for the transfer. The move comes as part of a broader initiative to allow states to establish and manage their intrastate electricity markets, provided they meet specific legal requirements.
The statement read: “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 will retain its role as the central regulator overseeing inter-state and international electricity activities, the new Electricity Act allows states to handle intrastate electricity markets upon meeting formal notification and legal requirements.
Kogi State has fulfilled these requirements and formally requested the transfer. NERC’s order includes directives for the transition process, including the establishment of a subsidiary by the Abuja Electricity Distribution Company (AEDC) named AEDC SubCo. This subsidiary will be responsible for the intrastate supply and distribution of electricity within Kogi State.
Key provisions of the order specify that AEDC must complete the incorporation of AEDC SubCo within 60 days of September 13, 2024, and apply for an intrastate supply and distribution license from KSERC.
NERC has set a deadline of March 12, 2025, for the completion of all transfer processes under this order.