In a landmark move following the provisions of the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Kogi State to the Kogi State Electricity Regulatory Commission (KSERC). This transfer marks a significant shift in the structure of electricity regulation within the state.
The Electricity Act 2023 empowers states to establish and regulate intrastate electricity markets, provided they meet specific legal requirements and notify NERC of their intent.
The Government of Kogi State, having met the stipulated conditions, formally requested the transfer of regulatory authority over its intrastate electricity operations. In response, NERC issued an order transferring oversight to KSERC.
As part of the transfer process, the Abuja Electricity Distribution Company (AEDC), which has been responsible for electricity supply and distribution in Kogi State, has been directed to establish a subsidiary company, AEDC SubCo.
This new entity will assume responsibility for the intrastate supply and distribution of electricity within the state. AEDC has been given a 60-day deadline, starting from 13th September 2024, to complete the incorporation of AEDC SubCo
The newly established subsidiary will be required to apply for and secure a license from KSERC for its operations. According to NERC’s directives, all transfers, including regulatory control and operational responsibilities, must be completed by 12th March 2025.
This development underscores the growing trend towards decentralized electricity regulation in Nigeria, aligning with the federal government’s broader goals of improving efficiency and expanding power supply at the state level.
With this transition, Kogi State now joins other states in the country seeking more localized control over their electricity markets, paving the way for increased investment and a more responsive regulatory framework for its citizens.
