NERC transfers regulatory power to 15 states under Electricity Act 2023

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Keypoints

• The Nigerian Electricity Regulatory Commission (NERC) has officially transitioned regulatory oversight to 15 state governments.
• Residents in these states must now direct all electricity-related complaints to their respective State Electricity Regulators (SER) instead of the federal commission.
• The transfer covers issues such as billing disputes, metering delays, and poor service delivery from Distribution Companies (DisCos).
• This move follows the decentralization of the power sector enabled by the Electricity Act 2023.
• Participating states include Lagos, Enugu, Oyo, Edo, Ogun, and ten others across different geopolitical zones.

Main Story

The structure of Nigeria’s power sector has undergone a fundamental shift. In a statement released on Saturday, April 25, 2026, NERC announced that 15 states have now taken full control of their electricity markets.

This development marks the practical implementation of the Electricity Act 2023, which effectively ended the federal monopoly on power regulation and allowed states to create their own independent energy ecosystems.

For consumers in the affected states, the most immediate change is the point of accountability. NERC will no longer handle primary complaints regarding local DisCos; instead, newly established State Electricity Regulators (SERs) will act as the first line of oversight.

This decentralization is intended to bring regulation closer to the people, allowing state governments to tailor policies, tariffs, and enforcement mechanisms to their specific local energy needs and economic realities.

The Issues

The primary challenge is the institutional-capacity gap; while states now have the legal right to regulate, many are still in the early stages of staffing and equipping their State Electricity Regulators (SERs) to handle thousands of complex billing and technical disputes. Authorities must solve the problem of jurisdictional-friction, as DisCos often operate across multiple state lines, creating potential confusion over which state’s laws apply to a specific transformer or feeder line.

Furthermore, there is a tariff-volatility risk; as states take control, they may introduce different pricing models, leading to a fragmented national market where electricity costs vary significantly across state borders. To succeed, the new SERs must establish clear, transparent communication channels to ensure that the transition from federal to state oversight does not result in a “regulatory vacuum” for frustrated consumers.

What’s Being Said

• You no longer report complaints to NERC; you now report complaints to your state electricity regulator, the commission clarified in its public advisory.
• The SER is now your primary point of contact for complaints such as disputed bills, metering delays, and poor customer service.
• Advocates of the reform argue that this decentralization is a catalyst for energy transition, allowing states to attract private investment for local grids.
• Critics have expressed concerns regarding the technical readiness of state-level offices to oversee large-scale utility companies effectively.

What’s Next

• The 15 identified states are expected to launch aggressive public awareness campaigns to introduce their local SER offices and complaint portals to residents.
• NERC will likely transition into a purely national-mandate body, focusing on the national grid and inter-state power transmission.
• Other states not yet on the list are anticipated to fast-track their local electricity laws to gain similar autonomy over their markets.
• Joint committees between NERC and the SERs will likely be formed to manage the transition of existing legal disputes and consumer cases currently in the federal pipeline.

Bottom Line

Power regulation in Nigeria has officially moved from Abuja to the state capitals. This shift represents the biggest test of state-level governance in the energy sector to date. For the average consumer, the success of this reform will be measured not by the change in office address, but by how much faster their meters are installed and their billing disputes are resolved.