The Nigerian electricity landscape is undergoing a significant transformation with the devolution of regulatory powers from the federal level to individual states. This shift is anchored in the amended 1999 Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, which empowers states to establish and regulate their own intrastate electricity markets. This decentralization aims to enhance efficiency, encourage investments, and improve electricity access across the nation. The Nigerian Electricity Regulatory Commission (NERC), while retaining its role as the central regulatory authority for interstate and international electricity operations, is mandated to transfer regulatory oversight to state commissions that meet the stipulated legal requirements. This process signifies a move towards a more localized and potentially more responsive electricity market structure.
The recent transfer of regulatory authority over the electricity market in Plateau State to the Plateau State Electricity Regulatory Commission (PSERC) exemplifies this devolution of power. Following the prescribed legal procedure, the Plateau State Government formally notified NERC of its intention to regulate its intrastate electricity market and requested the transfer of regulatory oversight. NERC, having verified Plateau State’s compliance with the necessary legal preconditions, issued the official transfer order. This order marks a pivotal moment for Plateau State, granting it the autonomy to manage its electricity generation, transmission, and distribution, fostering a more tailored approach to its specific energy needs.
The transfer order mandates Jos Electricity Distribution Plc (JED), the current electricity distribution company operating in Plateau State, to establish a subsidiary, JED SubCo, dedicated to intrastate electricity supply and distribution within the state. This restructuring is crucial for delineating responsibilities and ensuring a clear separation between interstate and intrastate operations. JED is required to complete the incorporation of JED SubCo within 60 days of the order’s issuance, dated March 12, 2025. Subsequently, JED SubCo must apply for and obtain the necessary license for intrastate electricity supply and distribution from the Plateau State Electricity Regulatory Commission (PSERC). This licensing requirement underscores the state’s newly acquired regulatory authority and its role in overseeing the intrastate electricity market.
The timeline for the complete transition of regulatory oversight is set for September 12, 2025, providing a six-month window for all necessary adjustments and transfers to be finalized. This structured timeframe aims to ensure a smooth and efficient handover of responsibilities, minimizing disruption to electricity supply and facilitating a seamless transition to the new regulatory framework. The transfer order encompasses all aspects of intrastate electricity operations, empowering PSERC to regulate generation, transmission, supply, and distribution within Plateau State.
With this transition, Plateau State joins a growing number of states, including Lagos, Imo, Ogun, Ondo, Ekiti, Enugu, Niger, Edo, and Oyo, that have taken control of their electricity markets. This trend signifies a nationwide movement towards decentralized electricity regulation, potentially leading to greater efficiency and responsiveness to local needs. These states now possess the authority to generate, transmit, and distribute electricity within their borders, and critically, they can issue licenses to investors across the electricity value chain. This ability to attract and regulate investments is expected to stimulate economic growth and improve electricity access within these states.
The devolution of regulatory authority in the Nigerian electricity sector holds significant promise for improving electricity service delivery across the nation. By empowering states to manage their own electricity markets, the Electricity Act 2023 aims to foster competition, attract investment, and tailor solutions to specific regional needs. While the transition requires careful planning and execution, the successful implementation of this decentralized model in states like Plateau offers a compelling case study for the potential benefits of localized electricity regulation. The long-term success of this model will depend on the ability of state regulatory commissions to effectively manage their respective markets, promote transparency, and ensure reliable and affordable electricity supply to consumers.
