Nearly three years after the Electricity Act 2023 came into force, about 21 states, including Rivers and Kano, have not taken control of their electricity markets, while 15 states have already moved to regulate power within their territories.
The Nigerian Electricity Regulatory Commission (NERC) said the states that have completed the transition now operate independent regulatory systems. These states oversee power market development, attract investments, fix tariffs, and protect consumers at the local level.
The shift follows provisions in the Electricity Act that allow states to manage electricity generation, transmission, and distribution once they meet legal and administrative requirements.
States that have completed the process include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, and Bayelsa.
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However, 21 others, such as Rivers, Kano, Kaduna, Delta, and Cross River, are yet to make the transition.
Experts warn that delays could slow improvements in power supply, discourage investments, and hinder the development of mini-grids and other local energy solutions. They say states that fail to act quickly may miss opportunities, especially in rural electrification.
Under the new system, state regulators are responsible for licensing local electricity operators, setting tariffs, and ensuring service standards, while NERC focuses on national grid and interstate activities.
Although progress began in late 2024 and picked up in 2025, some states that have transitioned are yet to fully establish their regulatory bodies.
Meanwhile, the Federal Government has urged all states to take greater responsibility for electricity management, describing decentralisation as key to solving Nigeria’s persistent power challenges.
