The Abia State government has received formal approval from the Nigerian Electricity Regulatory Commission (NERC) to independently regulate its electricity market, marking a major milestone in the ongoing decentralisation of Nigeria’s power sector.

The announcement, made on Wednesday via NERC’s official X (formerly Twitter) page, confirms that regulatory oversight of the electricity market in Abia has been transferred from the federal commission to the newly established Abia State Electricity Regulatory Authority (ASERA).

This decision is in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), which empower states to take charge of electricity regulation within their territories once specific legal requirements are met.

“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (‘NERC’ or the ‘Commission’) has issued an order to transfer regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA),” NERC stated in its official order.

According to the NERC Order, the Abia State government satisfied all conditions precedent as stipulated by the law, including formally notifying NERC and requesting the transfer of regulatory authority over its intrastate electricity market. This makes Abia the 10th state to secure such approval, joining a growing list that includes Imo, Enugu, Ekiti, Ondo, Oyo, Edo, Kogi, Ogun, and Niger.

A key provision of the order mandates the Enugu Electricity Distribution Company (EEDC), which currently supplies power in Abia, to create a dedicated subsidiary—EEDC SubCo—within 60 days of June 25, 2025. This new company will be responsible for the intrastate supply and distribution of electricity in Abia and must obtain a distribution licence from ASERA. All transfers related to this process must be concluded by December 24, 2025.

NERC noted that the government of Abia state complied with the conditions precedent in the laws, duly notified NERC and requested the transfer of regulatory oversight of the intrastate electricity market in Abia state.

The commission directed Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC subco) to assume responsibilities for intrastate supply and distribution of electricity in Abia from EEDC.

“EEDC shall complete the incorporation of EEDC SubCo within 60 days from 25th June 2025,” NERC said. “The subcompany shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ASERA, among other directives.”

According to NERC, all transfers envisaged would be completed by December 24, 2025.

In 2024, the commission began the process of granting states the authority to manage their electricity markets, including the generation, transmission, and distribution of power within their boundaries.

On March 17, 2025, Alex Otti, the governor of Abia, signed the state’s electricity bill into law, thereby empowering the state to regulate its electricity market.

The transfer of regulatory powers is part of a broader shift enabled by the Electricity Act 2023, which decentralises the Nigerian electricity market and allows states to generate, transmit, distribute, and regulate electricity within their borders, subject only to federal oversight for interstate and international operations. With this move, Abia State gains the authority to license operators, set tariffs, and enforce standards within its jurisdiction, independent of NERC’s direct control.

Stakeholders have welcomed the development as a step toward improved service delivery, increased investment, and greater accountability. However, experts have cautioned about the need for robust regulatory capacity at the state level to ensure a smooth transition and avoid service disruptions.

With the transfer order in effect, ASERA will begin the process of licensing and regulating all electricity distribution within Abia State. EEDC SubCo is expected to complete its incorporation and licensing process within the stipulated 60-day period, while the full transition of market oversight is targeted for completion by the end of 2025.

This development is expected to spur further reforms and investments in Abia’s electricity sector, particularly in areas like Aba, the state’s commercial hub, which has long clamored for improved and more reliable power supply.