POWER SHIFT: ABIA UNPLUGS FROM NERC, TAKES CHARGE OF ITS ELECTRICITY FUTURE
Amy Adindu
In a landmark move, the Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Abia State to the newly established Abia State Electricity Regulatory Authority (ASERA).
The announcement, made via NERC’s official X (formerly Twitter) account on June 25, 2025, confirms Abia’s compliance with the Electricity Act 2023 (Amended) and the amended 1999 Constitution, which empowers states to create and manage their own electricity markets once they fulfill specific legal and administrative conditions.
“In compliance with the amended Constitution... the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority,” NERC’s statement read.
What This Means
With this development, Abia State becomes one of the first states in Nigeria to officially take charge of regulating its electricity sector, a move expected to improve accountability, expand access, and boost investment in intrastate electricity supply and distribution.
EEDC to Establish Abia Subsidiary
A key provision in NERC’s order mandates that the Enugu Electricity Distribution Company (EEDC) must incorporate a new subsidiary (EEDC SubCo) dedicated exclusively to handling electricity distribution within Abia State. The SubCo must be fully incorporated within 60 days of June 25, 2025.
This restructuring ensures that operations within Abia State are separated from EEDC’s broader regional activities, aligning with the goal of localized regulatory autonomy.
A Step Toward Power Sector Reform
Energy experts and observers have hailed the move as a bold step toward decentralizing Nigeria’s power sector, noting that state-level control could lead to more tailored, efficient electricity management, especially in states ready to take on the responsibility.
Abia now joins a growing list of states leveraging the legal reforms under the Electricity Act 2023 to localize power sector governance, reduce dependency on federal oversight, and potentially accelerate electrification and innovation within their borders.
Share :