NERC Transfers Akwa Ibom Power Sector Oversight to State Regulator

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Akwa Ibom State’s electricity market to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).

NERC announced the development in a public notice on Wednesday, saying the transfer was in compliance with the amended Constitution and the Electricity Act 2023.

Under the order, Port Harcourt Electricity Distribution Company (PHEDC) is required to establish a subsidiary that will take responsibility for electricity supply and distribution within Akwa Ibom.

NERC said PHEDC must complete the incorporation of the new subsidiary, to be known as PHEDC SubCo, within 60 days from August 18, 2026.

The subsidiary will subsequently apply to AKSERC for a licence to operate the intrastate electricity supply and distribution business.

According to NERC, the transfer is expected to be completed by February 17, 2027, after which AKSERC will become the primary regulator of electricity activities within the state.

The commission, however, said it would retain regulatory oversight of electricity activities that cross state or international boundaries, including interstate and international generation, transmission, supply, trading and system operations.

NERC explained that the Electricity Act 2023 empowers states to establish and regulate their own intrastate electricity markets, provided they first put the necessary legal and institutional frameworks in place.

Akwa Ibom becomes the 17th state to receive a regulatory transfer order from NERC as part of the decentralisation of Nigeria’s electricity sector.

The development follows the inauguration of AKSERC by Governor Umo Eno in June 2026.

The decentralisation is expected to give state governments greater control over electricity regulation within their territories, while allowing them to develop policies and attract investments based on local power needs.

NERC said the reforms were designed to bring electricity regulation closer to consumers and improve the development of state-specific electricity markets.