The Nigerian Electricity Regulatory Commission (NERC) has approved the transfer of regulatory control of Akwa Ibom State's electricity market to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
The move makes Akwa Ibom the 17th state to receive a formal transfer order as Nigeria deepens efforts to decentralise electricity regulation and allow states to manage their internal power markets.
NERC announced the development in a public notice on Wednesday, saying the transfer was carried out in accordance with the amended Constitution and the Electricity Act 2023.
As part of the transition, Port Harcourt Electricity Distribution Company Plc (PHEDC) is required to establish a separate subsidiary that will be responsible for electricity supply and distribution within Akwa Ibom.
The commission directed PHEDC to incorporate the new company, to be known as PHEDC SubCo, within 60 days from August 18, 2026.
Following its incorporation, PHEDC SubCo will be required to obtain the appropriate licence from AKSERC to operate the state's intrastate electricity supply and distribution market.
NERC said the entire transition process should be completed by February 17, 2027.
The commission clarified that the transfer does not remove its authority over electricity activities that cross state or national boundaries.
"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," NERC said.
The regulator further explained that states wishing to take control of their internal electricity markets must first establish the necessary legal and institutional structures before seeking a formal transfer of regulatory authority.
It said the Electricity Act requires such states to notify NERC of their processes and formally request the transfer of regulatory responsibility.
With the latest order, AKSERC will become the principal regulator of electricity activities carried out exclusively within Akwa Ibom once the transition is completed.
PHEDC's operations in the state will consequently be undertaken through its new subsidiary under a licence issued by the state regulator, rather than directly under NERC's regulatory framework.
The development follows the inauguration of AKSERC by Governor Umo Eno in June.
At the event, Eno said the commission was established to facilitate reforms in the state's electricity sector and improve power supply. He also directed the commission to work with PHEDC and other stakeholders towards establishing an effective state electricity distribution system.
The transfer is a product of the constitutional amendments and Electricity Act 2023, which gave states the authority to make laws and establish regulators for electricity generation, transmission and distribution within their respective territories.
Before Akwa Ibom joined the list, NERC had said 16 states had completed the transition to state electricity regulation, with Gombe becoming the 16th in July 2026.
The states previously listed by NERC include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, Bayelsa and Gombe.
The reform is expected to give state governments greater control over their local electricity markets, encourage investment and enable them to develop power-sector policies that reflect the needs of their residents.
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