Nigeria has been grappling with persistent electricity challenges, including national grid collapses and gas shortages impacting power generation. In 2024 alone, the national grid collapsed at least 12 times, a trend that continued into 2025.
In response to these ongoing issues, the Nigerian Senate moved power generation, transmission, and distribution from the Exclusive Legislative List to the Concurrent List in 2022. This legislative shift paved the way for the Electricity Act, signed into law by President Bola Tinubu in June 2023, which now grants states the authority to regulate their electricity markets.
Despite the enabling legislation, progress has been gradual. According to a recent update from the Nigerian Electricity Regulatory Commission (NERC), only 15 states have successfully established and transitioned to their own State Electricity Regulators (SERs) by 2026. This means that the majority of states still fall under the purview of NERC for electricity regulation.
States Transitioning to Self-Regulation
Several states have made significant strides in decentralizing their electricity sectors. Enugu State was among the first to fully transition, with Governor Peter Mbah signing the state electricity bill into law on September 8, 2023. On October 22, 2024, Enugu officially handed over regulatory oversight of its electricity market to the newly formed Enugu State Electricity Regulatory Commission.
Ekiti State also adopted its State Electricity Regulators (SERs) on October 22, 2024. Governor Biodun Abayomi Oyebanji had previously signed the Ekiti State Electric Power Sector Law, 2023 (Law No. 11 of 2023) on October 16, 2023. This law allows the state to independently generate, transmit, and distribute electricity. The State Electricity Regulatory Bureau (SERB) was established in March 2024, making Ekiti the first state in its geopolitical region to have such a body.
Ondo State transitioned its regulatory oversight on October 23, 2024. While this recent transition marks a formal handover, Ondo had been an early adopter of decentralization, passing its state power law in 2020 and establishing the Ondo State Electricity Regulatory Bureau (OSERB) in 2021. Recently, the state has issued power generation and distribution licenses to Ore Power Limited and ASB Valiant Electricity Limited to enhance electricity supply.
Imo State is slated to adopt its regulatory framework by December 31, 2024, marking another step towards state-level control of the electricity sector.
