NERC Transfers Akwa Ibom Power Sector Control to State Regulator, Directs PHEDC Transition

By Joycelyn Ellakeche Adah

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC) in line with the amended 1999 Constitution and the Electricity Act 2023.

Under the provisions of the amended Electricity Act, Akwa Ibom State has officially taken charge of its local power sector with the establishment of the Akwa Ibom State Electricity Regulatory Commission (AKSERC).

With this shift, AKSERC assumes full regulatory oversight over all intrastate electricity operations.

NERC, however, will continue to manage interstate and international electricity generation, transmission, trading, supply, and system operations.

PerSecondNews reports that under the transfer order, NERC has directed the Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a new subsidiary, PHEDC SubCo, which will take responsibility for electricity supply and distribution within Akwa Ibom State.

PHEDC has been given 60 days from August 18, 2026, to complete the incorporation of the subsidiary.

The newly incorporated company is also required to apply for and obtain the necessary licence from AKSERC to operate the intrastate electricity supply and distribution business in the state.

NERC said all transfers covered by the order must be completed by February 17, 2027.

The Commission explained that the Electricity Act 2023 allows states that wish to establish and regulate intrastate electricity markets to formally notify NERC and request the transfer of regulatory authority over electricity operations within their territories.

With the latest order, Akwa Ibom joins the growing number of Nigerian states taking greater control of electricity regulation within their jurisdictions following the constitutional and legislative reforms that decentralised aspects of Nigeria’s electricity market.

The move is expected to give the state greater regulatory control over its electricity supply and distribution system, while creating a framework for state level intervention, investment and development of the power market.

NERC, however, remains the central regulator for electricity activities that fall within its retained jurisdiction, particularly inter-state and international electricity operations.