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).
The development marks another major step in Nigeria’s ongoing decentralisation of the power sector, allowing states to take greater control of electricity activities within their territories.
Under the new arrangement, AKSERC will become responsible for regulating electricity activities taking place entirely within Akwa Ibom, including intrastate electricity supply and distribution.
NERC said the transfer was carried out in line with the amended Constitution and the Electricity Act 2023, which provides a legal framework for states to establish and regulate their own electricity markets.
The commission explained that its role has not been completely removed from the state. NERC will continue to regulate electricity activities that cross state or national boundaries, including interstate and international generation, transmission, supply, trading and system operations.
As part of the transition, the Port Harcourt Electricity Distribution Company (PHEDC) has been directed to establish a new subsidiary, known as PHEDC SubCo, which will take responsibility for electricity supply and distribution within Akwa Ibom.
PHEDC is expected to complete the incorporation of the subsidiary within 60 days from August 18, 2026. The new company will then apply to AKSERC for the necessary licence to operate the state's intrastate electricity market.
NERC said all aspects of the regulatory transfer are expected to be completed by February 17, 2027.
The move follows the establishment and inauguration of AKSERC by Akwa Ibom State Governor Umo Eno in June. The state government said the commission was created to drive reforms in the power sector and improve electricity supply across the state.
During the inauguration of the commission, Governor Eno directed AKSERC to work toward improving electricity supply and creating a more efficient and competitive power market capable of attracting investment.
The decentralisation of electricity regulation is expected to give state governments greater influence over local electricity markets and allow them to develop policies based on the specific needs of their residents and businesses.
For electricity consumers in Akwa Ibom, the transition will eventually mean that complaints and regulatory matters relating to local electricity supply will be handled primarily by the state regulator rather than NERC.
Akwa Ibom becomes the 17th state to receive a formal transfer order from NERC, further expanding the nationwide shift toward state-level electricity regulation.
The reform is expected to bring regulation closer to electricity consumers while encouraging states to develop solutions to local power challenges and attract investment into electricity infrastructure.
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