Kehinde Fajobi
The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Ogun State’s electricity market to the Ogun State Electricity Regulatory Commission (OGERC).
The directive, announced via NERC’s X handle on Monday, follows the Ogun State Government’s compliance with the provisions of the amended Electricity Act 2023.
According to NERC, the Act requires states intending to regulate intra-state electricity markets to notify the commission of their processes and seek formal authorisation for the transfer of regulatory authority.
“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (“NERC” or the “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 (OGERC),” the statement read.
The commission clarified that it will remain the central regulator for inter-state, international generation, transmission, and trading, while states can oversee intra-state electricity markets once they meet the legal requirements.
The directive mandates Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE), and Ibadan Electricity Distribution Company (IBEDC) to establish subsidiaries—EKEDP SubCo, IE SubCo, and IBEDC SubCo—to handle electricity supply and distribution within Ogun State.
“EKEDP, IE, and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo, and IBEDC SubCo within 60 days from December 24, 2024.
“These subcompanies shall apply for and obtain licences for the intra-state supply and distribution of electricity from OGERC,” NERC directed.
All transfers under this directive are expected to be finalised by June 23, 2025.