The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), marking a further shift towards state-level regulation of Nigeria’s power sector.
NERC announced the transfer in a statement on Wednesday, saying it followed the constitutional amendment and the enactment of the Electricity Act 2023, which provide for states to regulate electricity generation, transmission and distribution within their territories.
Under the new arrangement, AKSERC will assume regulatory responsibility for intrastate electricity activities in Akwa Ibom, while NERC will retain oversight of interstate and international electricity operations.
NERC said its continuing responsibilities include regulation of the national grid and power plants whose operations or supply extend across more than one state.
The transfer order also directs Port Harcourt Electricity Distribution Plc (PHEDC) to establish a subsidiary, PHEDC SubCo, to take over responsibility for electricity supply and distribution within Akwa Ibom State from the parent company.
NERC said PHEDC must complete the incorporation of PHEDC SubCo within 60 days from August 18, 2026.
The newly incorporated subsidiary will subsequently be required to apply to AKSERC for a licence to undertake intrastate electricity supply and distribution in the state.
“The sub company shall apply for and obtain licence for the intrastate supply and distribution of electricity from AKSERC, among other directives,” NERC stated.
According to the commission, all transfers envisaged under the order are expected to be completed by February 17, 2027.
The development follows the broader restructuring of electricity regulation enabled by Nigeria’s constitutional and legislative reforms, which have opened the way for states to establish regulatory frameworks for electricity markets operating entirely within their territories.
The transfer means that electricity activities confined to Akwa Ibom will increasingly fall under the regulatory jurisdiction of AKSERC, while NERC will continue to oversee electricity activities that cross state or national boundaries.
The move is expected to give Akwa Ibom greater regulatory control over its intrastate electricity market and allow the state commission to set and enforce rules applicable to electricity supply and distribution within the state.
