The Nigerian Electricity Regulatory Commission (NERC) has announced the formal transfer of regulatory oversight for the electricity market in Kogi State to the Kogi State Electricity Regulatory Commission (KSERC).

In a statement shared on NERC's official social media account, the commission clarified the legal framework supporting this move. It stated, “In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), NERC has issued an order to transfer regulatory oversight of the electricity market in Kogi State from NERC to KSERC.”

While NERC will continue to function as the central regulator overseeing interstate and international electricity generation, transmission, supply, and trading, the Electricity Act of 2023 empowers states to establish and regulate their intrastate electricity markets.

Kogi State's adherence to these stipulations led to its formal request for NERC to transfer oversight of its intrastate electricity market. In response, NERC has issued an order detailing several directives for this transition.

Among these directives is a requirement for the Abuja Electricity Distribution Company (AEDC) to establish a subsidiary, known as AEDC SubCo, which will manage the intrastate supply and distribution of electricity within Kogi State.

NERC has mandated that AEDC complete this incorporation within 60 days from September 13, 2024, and that AEDC SubCo apply for a license from KSERC for its operations.

Furthermore, NERC has set a deadline for completing all aspects of this transfer by March 12, 2025.