Ogun State Assumes Regulatory Oversight of Electricity Market

In a significant development, the Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has officially transferred regulatory oversight of the electricity market in Ogun State to the newly established Ogun State Electricity Regulatory Commission (OGERC). This announcement follows a similar move earlier this month, where Lagos State was granted regulatory oversight over its own electricity market.

The transfer is in line with the amended provisions of the Nigerian Constitution and the Electricity Act of 2023, which grants states the authority to regulate their intrastate electricity markets. Under the new legal framework, states can now assume control over electricity operations within their territories, provided they meet the necessary conditions and notify NERC.

NERC confirmed that the transfer is a step towards decentralizing the regulation of Nigeria’s electricity sector, empowering state-level regulators to manage local electricity supply and distribution. The NERC’s statement outlined that Ogun State had complied with all conditions required by the Electricity Act 2023, including the formal notification to NERC and a request to assume responsibility for regulating the intrastate electricity market.

As part of the transition, NERC has directed electricity distribution companies—Eko Electricity Distribution Company (EKEDP), Ikeja Electric Plc (IE), and Ibadan Electricity Distribution Company (IBEDC)—to incorporate subsidiaries responsible for intrastate electricity supply and distribution in Ogun State. These subsidiaries, EKEDP SubCo, IE SubCo, and IBEDC SubCo, are expected to obtain licenses for their operations from OGERC.

The incorporation of the sub-companies is to be completed within 60 days from December 24, 2024, with the entire transfer process slated to be completed by June 23, 2025.

This move marks a significant shift in the governance of Nigeria’s electricity sector, further decentralizing regulatory powers and granting states more autonomy in managing their energy markets.