The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the intrastate electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), marking a major step in the decentralisation of Nigeria’s electricity market under the Electricity Act 2023.

Under the order issued by NERC on August 18, 2026, Port Harcourt Electricity Distribution Plc (PHEDC) has been directed to incorporate a new subsidiary, PHED SubCo, which will assume responsibility for electricity supply and distribution within Akwa Ibom State.

NERC said PHEDC must complete the incorporation of the subsidiary within 60 days of the commencement of the order, while all transfers envisaged under the regulatory instrument are to be completed by February 17, 2027.

The development effectively moves the regulation of electricity activities within Akwa Ibom from the federal regulator to the state regulator, although NERC will retain its federal regulatory responsibilities over inter-state and international electricity generation, transmission, supply, trading and system operations.

NERC said the transfer complied with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, which provides the legal framework for states to establish and regulate intrastate electricity markets.

The Commission said: “With the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.”

It added that the Electricity Act requires any state seeking to establish and regulate an intrastate electricity market to formally notify NERC of its processes and request the transfer of regulatory authority over electricity operations within the state.

The order is significant for Akwa Ibom because the state has spent the past year building the institutions required to assume control of its electricity market.

In June, Governor Umo Eno inaugurated a five-member board of AKSERC and charged the commission with the responsibility of overhauling the state’s electricity sector within 18 months to improve electricity supply and support economic growth.

At the inauguration, Eno said the state had incorporated Ibom Electricity Holding Limited as a strategic vehicle for managing state electricity assets and investments.

The governor also disclosed that the state had commenced the regularisation of its shareholding interests in 4Power Consortium Limited and PHEDC, describing the move as a precursor to establishing a dedicated Akwa Ibom State electricity distribution subsidiary.

The state government’s preparations therefore predate NERC’s latest order, with AKSERC already established and operating as the institutional vehicle for the transfer.

NERC itself disclosed in July that AKSERC’s leadership had engaged the federal regulator as part of preparations for the new regulatory regime. During a courtesy visit to NERC, AKSERC Chairman, Mrs Arit Uya, said the state commission intended to draw on NERC’s regulatory experience while developing a framework tailored to Akwa Ibom’s electricity market.

The transfer also places Akwa Ibom among a growing number of states taking advantage of the constitutional and legislative changes that ended the previous centralised structure of electricity regulation.

NERC said in July that 16 states had fully transitioned to state electricity regulation, with the reforms designed to bring regulatory oversight, consumer protection, complaint management and service-quality monitoring closer to electricity users.

The Electricity Act provides states with the authority to regulate electricity generation, transmission, system operation, distribution, supply and retail activities within their jurisdictions, subject to the constitutional division of powers and the federal responsibilities retained under the Act.