The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Ogun State’s electricity market to the Ogun State Electricity Regulatory Commission (OGERC). This move aligns with the amended Constitution and the provisions of the Electricity Act 2023, which empowers states to establish and regulate their intrastate electricity markets once formal notification and requests are submitted to NERC.
The decision, announced via NERC’s official X (Twitter) page, confirms that NERC will continue its role as the central regulator for interstate and international electricity activities, including generation, transmission, and trading. However, states like Ogun can now independently regulate electricity supply and distribution within their boundaries through designated regulatory bodies.
Ogun State met all legal requirements, including notifying NERC, to gain control of its intrastate electricity market. Consequently, NERC directed relevant distribution companies, including Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE), and Ibadan Electricity Distribution Company (IBEDC), to establish subsidiaries to handle local electricity supply and distribution. These subsidiaries—EKEDP SubCo, IE SubCo, and IBEDC SubCo—must be incorporated within 60 days from December 24, 2024. They are required to obtain operational licenses from OGERC by June 23, 2025.
This transfer is part of a broader national strategy to decentralise electricity management and enhance efficiency by empowering state-level regulatory bodies. Earlier in 2024, NERC made similar transfers to regional regulators in Lagos, Ekiti, and Ondo states. The decentralisation aims to provide localised oversight, ensuring quicker responses to regional electricity challenges and fostering better regulation across Nigeria.
