Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Nigerian Electricity Regulatory Commission (NERC) has formally confirmed that 15 states have assumed full regulatory authority over their electricity markets under the framework of the Electricity Act 2023, marking a definitive shift in Nigeria’s power sector governance. In a public notice issued this week, the Commission stated that regulatory oversight and dispute resolution functions within those states have been effectively decentralised, meaning electricity consumers in those jurisdictions will no longer direct complaints about estimated billing, metering delays, or poor service to NERC. Instead, they are now required to channel all service-related complaints to their respective State Electricity Regulators (SERs), which have become the primary regulatory interface between customers and distribution companies. The states listed as having completed the transition include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra and Bayelsa.
The transition represents a fundamental restructuring of Nigeria’s electricity sector, nearly three years after President Bola Tinubu signed the Electricity Act into law in June 2023. The landmark legislation removed electricity from the exclusive legislative list, allowing state governments to generate, transmit and distribute electricity within their borders. It also mandates states to establish independent regulatory commissions to manage licensing, tariffs and consumer protection. While the federal government has urged all 36 states to take over power regulation, only 15 have so far met the legal and administrative requirements. The remaining 21 states, including Rivers, Kano, Kaduna, Delta and the Federal Capital Territory, remain under NERC’s direct oversight pending the establishment of their own regulatory frameworks.
For millions of electricity consumers in the affected states, the change means a different avenue for seeking redress. A resident in Lagos who experiences persistent estimated billing or a trader in Enugu who complains about a faulty meter must now approach the Lagos State Electricity Regulatory Commission or the Enugu State Electricity Regulatory Commission, respectively, rather than the federal regulator. NERC has made it clear that for states that have enacted their electricity laws and established regulators, the Commission will cede regulatory oversight of intrastate electricity markets, retaining authority only over interstate electricity operations and the national grid. The Commission has also said it will continue to oversee cross-border electricity transactions and ensure that national standards are maintained as the transition progresses.
The decentralisation policy comes at a time when Nigeria’s electricity sector is under severe strain. The country has experienced at least two major national grid collapses in 2026 alone, and electricity generation has dropped to just 3,705 megawatts as of March 2026, with 16 out of 33 power plants not supplying electricity to the grid. Additionally, seven northern states are currently undergoing six weeks of scheduled blackouts from April 9 to May 22, 2026, as the Nigerian Independent System Operator modernises the grid by installing Optical Ground Wire fibre optic infrastructure. States affected include Plateau, Gombe, Bauchi, Borno, Adamawa, Taraba and Yobe. Industry analysts have warned that the slow pace of transition in some regions could postpone the anticipated benefits of decentralisation, such as enhanced power supply, localised pricing structures, and increased investments in embedded generation and mini-grid projects. Stakeholders have argued that states that have not yet made the switch risk losing out on opportunities to attract funding for off‑grid electrification projects, especially in underprivileged rural areas.
The new regulatory structure also shifts the responsibilities of state regulators. Under the framework, state electricity regulators are now responsible for licensing intrastate electrical operations, enforcing technical standards, setting local distribution tariffs, and protecting power consumers within their jurisdictions. They are also expected to stimulate the expansion of the local electricity market by guaranteeing service quality standards for distribution businesses, encouraging private sector participation, and promoting the deployment of renewable energy. Only interstate and national grid-related activities remain under NERC’s direct supervision. For consumers, the Commission has provided dedicated channels for complaints in states still under its oversight, including direct phone lines (0201 344 4331 and 0908 899 9244) and a centralized email portal (complaints@nerc.gov.ng). However, residents in the 15 states that have transitioned are expected to contact their respective state regulators directly.
The timeline of the transition has been gradual. The first changes took place in October 2024, when Enugu and Ekiti took over regulatory responsibility, with Ondo following soon after. In 2025, the pace quickened as several states, notably Oyo, Edo, Lagos, and Ogun, finished their transitions. Between January and February 2026, Nasarawa, Anambra, and Bayelsa were added to the list. In Enugu, the state government has already operationalised its electricity regulatory commission, formally taking over responsibilities previously handled by NERC. Similar steps have been taken in Lagos and other states that have passed electricity laws in line with the Act. The phased implementation is designed to allow willing states to develop independent electricity markets while allowing others to remain under the federal regulatory structure until they are ready to assume full control.
Reactions to the transition have been mixed. Some consumer advocacy groups have welcomed the decentralisation, arguing that state regulators are better positioned to address localised complaints and enforce service standards. They have pointed to the Enugu State Electricity Regulatory Commission’s decision to reduce Band A tariff from N209 to N160 per kilowatt‑hour in July 2025 as evidence that state‑level regulation can produce tangible benefits for consumers. Others, however, have expressed scepticism about the capacity of state regulators to enforce compliance, noting that some states have yet to establish fully functional regulatory bodies. A report by the Resource Centre for Human Rights and Civic Education has warned that in states without a functional regulator, consumers may be left without any authority to complain to, as NERC has since divested its offices in those jurisdictions.
The federal government has challenged the 36 states to take over power generation, transmission, and distribution, arguing that centralisation cannot work for a country as large as Nigeria. Power Minister Adebayo Adelabu recently stated at an energy summit in Lagos that decentralisation and liberalisation are necessary effects of the Electricity Act, adding that “centralisation cannot work for us in a country as large as Nigeria, which has a diverse set of energy needs and challenges”. For the millions of Nigerians who endure daily power outages and grapple with opaque billing systems, however, the success of the reform will ultimately be measured not by policy announcements but by whether the lights stay on and the bills become fair.
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