Power sector experts and operators have voiced a mix of concerns, caution, and optimism following the shift in regulatory control of electricity markets to individual states. This development comes in the wake of the Nigerian Electricity Regulatory Commission’s (NERC) recent announcement on the implementation of the Electricity Act 2023.
According to NERC, seven states—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi—have taken full control of their electricity markets. This marks a significant shift from centralized regulation, allowing these states to oversee generation, transmission, and distribution within their territories.
Several other states, including Lagos, Ogun, Niger, and Plateau, are in the process of transitioning and are expected to complete the shift between June and September 2025. While some experts warn of potential regulatory inconsistencies and infrastructure challenges, others see opportunities for improved efficiency, localized solutions, and increased private sector participation.
