In a landmark move to promote state-level control of power markets, the Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Nasarawa State to the newly established Nasarawa State Electricity Regulatory Commission (NASERC).
The announcement was made on Saturday, August 2, 2025, via NERC’s official social media platforms. The commission confirmed that the transfer is in accordance with the amended 1999 Constitution and the Electricity Act 2023, which grants Nigerian states the autonomy to regulate electricity generation, transmission, and distribution within their respective jurisdictions.
“In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Nasarawa State to the Nasarawa State Electricity Regulatory Commission,” NERC stated.
The Electricity Act 2023 redefined the national power landscape by decentralising authority and empowering states to create and manage intrastate electricity markets. While NERC remains the central regulator for interstate and international electricity generation, transmission, and trading, the Act enables states to take charge of domestic electricity affairs once they notify the federal regulator and establish a local commission.
The Act mandates that any state wishing to regulate its electricity market must formally notify NERC and demonstrate institutional readiness for the responsibilities. Once approved, the transfer of authority becomes official.
Following the transfer order, NERC has directed Abuja Electricity Distribution Company (AEDC) — the electricity distribution company responsible for Nasarawa — to incorporate a subsidiary (AEDC SubCo) dedicated exclusively to the intrastate electricity distribution within Nasarawa State.
“AEDC shall complete the incorporation of AEDC SubCo within 60 days from August 4, 2025,” the commission ordered.
The SubCo is required to apply for and secure a distribution licence from NASERC. The entire transfer process, including regulatory, technical, and legal adjustments, is expected to be finalised by February 3, 2026, as stipulated in NERC’s directive.
Nasarawa is not alone in this shift. According to NERC, several other states — including Lagos, Ogun, Ondo, Oyo, Edo, Ekiti, Enugu, Imo, Kogi, and Niger — have already completed or initiated similar transitions. These states have successfully set up state-level electricity regulatory commissions under Section 230 of the Electricity Act, which outlines the steps for the orderly transfer of power sector control.
This trend underscores a growing wave of decentralisation in Nigeria’s power sector, as state governments seek to bypass federal bottlenecks and develop more tailored, reliable electricity solutions for their residents.
With this transfer, Nasarawa State gains full regulatory control over generation, transmission, and distribution of power within its territory. This includes tariff setting, consumer protection, licensing of operators, and oversight of service delivery — all under NASERC’s purview.
Governor Abdullahi Sule had earlier declared the state’s intention to improve its electricity infrastructure and attract private investment to boost local development. With NASERC now formally in place, observers believe Nasarawa is poised to leverage this autonomy for increased rural electrification and off-grid solutions.
NERC’s handover of electricity regulatory powers to Nasarawa marks a significant milestone in Nigeria’s energy reform journey. As more states move to take control of their power sectors, the future of Nigeria’s electricity market may shift toward regional innovation, consumer-driven models, and improved service delivery at the grassroots level.