NERC Transfers Electricity Market Regulation To Abia State

The Nigerian Electricity Regulatory Commission (NERC) has formally approved the transfer of regulatory oversight of Abia State’s electricity market to the Abia State Electricity Regulatory Agency (ASERA), in line with the Electricity Act 2023 (as amended).

The move, which takes effect from June 25, 2025, follows the issuance of Order No. NERC/2025/058 and confirms that Abia State has fully complied with Section 230 (2) of the Electricity Act. The Commission also acknowledged that the state government duly notified NERC and requested the transfer.

With this development, the Enugu Electricity Distribution Company (EEDC), which currently serves Abia State, is expected to establish a new subsidiary that will exclusively handle the supply and distribution of electricity within the state.

Speaking on the significance of the approval, the Abia State Commissioner for Power and Public Utilities, Engr. Ikechukwu Monday, described it as a major milestone that aligns with Governor Alex Otti’s commitment to improving access to reliable electricity for residents, industries, and underserved communities across the state.

He outlined several benefits of the transfer, including:

• Localized Tariff Structures: ASERA will be able to set electricity tariffs that reflect the state’s economic conditions, ensuring fairer pricing and better cost recovery.
• Improved Service Delivery: With the agency based in Umuahia, regulatory issues such as licensing and complaint resolution will be addressed more efficiently.
• Tailored Grid Development: ASERA will prioritize electricity projects that meet the specific needs of Abia communities.
• Increased Private Sector Investment: The new regulatory clarity is expected to attract investment in mini-grids and other private power initiatives, with EEDC also required to establish a state-focused distribution company.
• Enhanced Accountability: ASERA’s proximity to consumers is expected to improve transparency and public trust.
• Job Creation: The transition is expected to open new employment and training opportunities in the power sector.

Engr. Monday confirmed that the transfer process is scheduled for completion within six months, with December 24, 2025, set as the deadline.

This development positions Abia as one of the pioneering states taking full control of its electricity market, paving the way for state-driven innovation, efficiency, and growth in the power sector.