NERC transfers electricity market oversight to Akwa Ibom regulatory commission

The Nigerian Electricity Regulatory Commission (NERC) has ordered the transfer of regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).

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The transfer, contained in an order signed by NERC Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, takes effect from 18 August 2026.

The order is posted on the commission’s website and its official Facebook page.

The order, NERC/2026/087, directs the Port Harcourt Electricity Distribution Company (PHED) Plc to incorporate a subsidiary for electricity supply and distribution in Akwa Ibom.

The development follows the state government’s notification to NERC that it had fulfilled the legal requirements for assuming regulatory control of its intrastate electricity market under the Electricity Act 2023.

AKSERC to control tariffs, consumer protection

Under the new arrangement, AKSERC will have exclusive responsibility for determining and adopting the end-user tariff methodology applicable within its regulatory jurisdiction.

NERC said the final end-user tariffs approved by AKSERC will be the exclusive tariffs applicable in Akwa Ibom, while tariff policy support for end-use customers will remain the responsibility of the state government.

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AKSERC will also assume sole responsibility for customer complaint handling, dispute resolution and consumer protection within the state.

However, NERC will retain regulatory authority over cross-border transactions involving the national grid and generation and transmission services connected to grid-connected plants.

“The Commission exercises regulatory oversight of the Nigerian Electricity Supply Industry (“NESI”) as the apex sectoral regulator in accordance with powers conferred by the Electricity Act 2023 (“EA” or the “Act”),” the order states.

The commission said all transfers under the order must be completed by 17 February 2027.

PHED ordered to create Akwa Ibom subsidiary

NERC directed PHED to incorporate the new subsidiary, to be known as PHED SubCo, within 60 days of the order taking effect.

The subsidiary is expected to apply to AKSERC for a licence to undertake intrastate electricity supply and distribution.

PHED must also identify the geographical boundaries of its distribution zone in Akwa Ibom and carve out its network in the state as a standalone network.

The company is required to install boundary meters at points where its network crosses from Akwa Ibom into neighbouring states.

It must also prepare an asset register of its electricity infrastructure in Akwa Ibom, evaluate contractual obligations and liabilities attributable to its operations in the state, identify energy offtake points and determine the employees required to operate the new subsidiary.

NERC directed PHED to subsequently transfer the identified assets, liabilities, contractual obligations and employees to PHED SubCo.

The commission will also prepare a register of electricity licensees and other authorised operators in Akwa Ibom and notify those whose activities are limited to the state that regulatory oversight has moved to AKSERC.

Move follows Eno’s electricity reform

The transfer is the latest step in Governor Umo Eno’s electricity reform programme, which began with the state’s electricity summit in September 2025.

At the summit, Mr Eno said electricity should not be treated as a luxury and described it as a fundamental enabler of development. He also said electricity access was central to his administration’s Arise Agenda, particularly its rural development objective, this newspaper reported.

The summit culminated into the development of a roadmap for establishing a sub-national electricity market aimed at improving supply, attracting investment and expanding access to underserved communities.

The state subsequently enacted the Akwa Ibom State Electricity Law 2025 and established AKSERC.

In June 2026, Mr Eno inaugurated the commission’s five-member pioneer board and gave it an 18-month mandate to overhaul the state’s electricity sector.

He described AKSERC as “the sole regulator of all electricity business conducted between buyers and sellers within Akwa Ibom State” and directed the commission to work with federal agencies and PHED towards establishing a dedicated state electricity distribution company.

The governor also said the state had incorporated Ibom Electricity Holding Limited as a vehicle for managing state electricity assets and investments and had begun regularising its shareholding interests in 4Power Consortium Limited and PHED as a precursor to establishing a dedicated state distribution subsidiary.

‘Reforms beginning to yield results’

Akwa Ibom Commissioner for Information, Aniekan Umanah, told PREMIUM TIMES on Wednesday that the transfer represented a major milestone in Governor Eno’s electricity reforms.

“The achievement means a lot for the electricity reforms that Governor Eno championed. He started with the electricity summit and later enacted the electricity law, developed the electricity policy and then constituted the electricity regulatory commission,” he said.

“It is a good day for Akwa Ibom because the reforms are beginning to yield results.”

The transition is taking place within the broader decentralisation of Nigeria’s electricity sector enabled by the Electricity Act 2023, which allows states to establish and regulate electricity markets within their territories.

NERC said its transfer of regulatory responsibility would not affect its oversight of electricity activities involving interstate or international operations and national-grid transactions.