This decision aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), decentralising electricity regulation in Nigeria.
According to the Electricity Act 2023, NERC retains its role as central regulator, overseeing inter-state/internationalngeneration, transmission, supply, trading, and system operations.
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“States are now empowered to regulate intrastate electricity markets, provided they establish the necessary legal and institutional frameworks.
“The Government of Kogi State has complied with the required conditions, notifying NERC and requesting the transfer of regulatory oversight.
“In response, NERC’s transfer order includes the following provisions: Abuja Electricity Distribution Company (AEDC) must incorporate a subsidiary (AEDC SubCo) within 60 days from September 13 to handle intrastate supply and distribution of electricity in Kogi.
“AEDC SubCo must obtain a license from KSERC for intrastate supply and distribution of electricity.
“All transfers must be completed by March 12, 2025.”