The Federal Government has granted the Ogun State Electricity Regulatory Commission (OGERC) the authority to oversee the state’s electricity market, marking a significant step towards decentralizing Nigeria’s energy sector.
The transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to OGERC was announced in a statement on Monday via NERC’s official X handle.
This follows similar developments in Lagos State and aligns with the amended Constitution and the Electricity Act of 2023, which empowers states to regulate their intrastate electricity markets.
According to NERC, the decision is part of a broader framework established under the amended laws to enhance efficiency and state-level autonomy in the electricity sector.
The statement read, “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Ogun State from the commission to the Ogun State Electricity Regulatory Commission.”
NERC highlighted that Ogun State had fulfilled the necessary prerequisites, including formal notification and compliance with provisions outlined in the Electricity Act 2023.
These steps were essential for assuming regulatory control over intrastate electricity operations.
The commission emphasized its continued role as a central regulator, overseeing inter-state and international electricity generation, transmission, and system operations.
However, states can establish their regulatory bodies for intrastate markets upon meeting statutory conditions.
The regulatory handover is set to be completed by June 23, 2025, as outlined in NERC’s transition order. Key provisions include:
On formation of Subsidiaries, the statement read that distribution companies operating in Ogun State—Eko Electricity Distribution Company (EKEDC), Ikeja Electric (IE), and Ibadan Electricity Distribution Company (IBEDC)—are mandated to create subsidiaries (EKEDC SubCo, IE SubCo, and IBEDC SubCo) to manage intrastate electricity supply and distribution.
It added that the sidiaries must obtain licences from OGERC within 60 days of December 24, 2024.
On Completion Deadline, it stated that all necessary transfers and adjustments must be finalized by June 23, 2025.
NERC has urged stakeholders and the public to visit its website for full details of the transition order.
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