NERC transfers electricity regulatory oversight to Akwa Ibom

By Onu Okorie

Nigerian Electricity Regulatory Commission NERC has transferred regulatory oversight of the electricity market in Akwa Ibom State to the newly established Akwa Ibom State Electricity Regulatory Commission AKSERC.
The transfer, contained in an order issued by NERC, is in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (as amended), which empower states to establish and regulate electricity markets within their territories.
Under the new framework, AKSERC will assume responsibility for regulating intrastate electricity activities in Akwa Ibom, while NERC will retain oversight of interstate and international electricity generation, transmission, supply, trading and system operations.
The Electricity Act requires states seeking to regulate their electricity markets to formally notify NERC and request the transfer of regulatory authority over electricity operations within their territories.
As part of the transition, NERC directed Port Harcourt Electricity Distribution Plc PHEDC)l to incorporate a subsidiary, to be known as PHEDC SubCo, which will take over responsibility for intrastate electricity supply and distribution in Akwa Ibom State.
NERC directed PHEDC to complete the incorporation of the subsidiary within 60 days from August 18, 2026. The new company is also required to apply for and obtain a licence from AKSERC to operate the intrastate electricity supply and distribution business.
According to the order, all transfers envisaged under the directive are to be completed by February 17, 2027.
The development means that AKSERC will eventually become the primary regulator of electricity activities within Akwa Ibom, while NERC will continue to oversee electricity operations that fall within the federal jurisdiction.
The transition is also expected to change the operational structure of electricity distribution in the state, with the new PHEDC subsidiary operating under a licence issued by AKSERC rather than directly under NERC.
The move followed the inauguration of AKSERC by Governor Umo Eno in June 2026.
At the inauguration, Eno said the commission was established to drive reforms in the state’s electricity sector and improve power supply. He directed the commission to work with PHEDC and other stakeholders towards establishing a state-based electricity distribution structure.
The decentralisation of electricity regulation became possible following constitutional amendments and the enactment of the Electricity Act 2023, which gave states the authority to make laws and establish regulatory bodies for electricity generation, transmission and distribution within their territories.
The transfer of regulatory powers to AKSERC marks another step in the implementation of Nigeria’s emerging decentralised electricity regulatory framework, with states taking greater responsibility for developing and regulating electricity markets within their jurisdictions.