NERC has officially transferred electricity market regulation in Abia to the state’s own authority, ASERA.
This move allows Abia to manage power supply independently, following Nigeria’s 2023 Electricity Act reforms.
The Nigerian Electricity Regulatory Commission (NERC) has formally handed over regulatory oversight of the Abia State electricity market to the Abia State Electricity Regulatory Authority (ASERA), marking a significant step in the decentralization of Nigeria’s power sector.
NERC announced the development in a statement shared via its official X (Twitter) account on Wednesday, confirming that the transfer is in line with the amended Constitution and the Electricity Act 2023.
According to the statement, the Government of Abia State fulfilled all legal requirements, including a formal request for regulatory authority, before NERC issued the transfer order. This move empowers the state to manage its intrastate electricity generation, transmission, and distribution operations independently.
A major provision of the order mandates the Enugu Electricity Distribution Company (EEDC) to set up a new subsidiary, named EEDC SubCo, which will be responsible for the supply and distribution of electricity within Abia State. The company must be incorporated within 60 days from June 25, 2025, and must obtain an operational license from ASERA. All outlined transitions are to be completed no later than December 24, 2025.
This development aligns with broader reforms introduced in the Electricity Act 2023, which decentralizes Nigeria’s electricity regulation framework. Under the new law, states can now create their own electricity markets and regulatory bodies, allowing them to independently address local energy challenges.
Abia State now joins other states like Lagos, Ogun, Ekiti, Ondo, Plateau, Niger, and Kogi, which have all successfully assumed local control over their electricity markets. These state-level transitions are aimed at fostering more responsive, efficient, and tailored regulation within the power sector.
NERC noted that decentralization not only enhances regulatory effectiveness but also accelerates the resolution of issues affecting power generation and distribution at the grassroots level.
