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), marking another step in the decentralisation of Nigeria’s power sector.
Under the transfer order, the Port Harcourt Electricity Distribution Company Plc (PHEDC) is required to establish a subsidiary that will take over responsibility for electricity supply and distribution within Akwa Ibom State.
NERC disclosed the development on Wednesday in a public notice posted on its official X handle, saying the transfer was made in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, as amended.
“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 latest order makes Akwa Ibom the 17th state to receive a formal transfer order for the regulation of its intrastate electricity market.
Before the latest development, NERC had said 16 states had fully transitioned to state electricity regulation, with Gombe becoming the 16th state to complete the process in July 2026.
NERC explained that states seeking to establish and regulate their own intrastate electricity markets must first put the necessary legal and institutional framework in place before formally requesting the transfer of regulatory authority.
“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator,” the commission said.
Under the latest order, PHEDC has been directed to incorporate a subsidiary known as PHEDC SubCo, which will assume responsibility for intrastate electricity supply and distribution in Akwa Ibom.
“PHEDC shall complete the incorporation of PHEDC SubCo within 60 days from 18th August 2026. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from AKSERC, among other directives,” NERC said.
All transfers envisaged under the order are expected to be completed by February 17, 2027.
Once the transition is completed, AKSERC will become the primary regulator of electricity activities within Akwa Ibom, while NERC will continue to oversee interstate and international electricity operations.
The development is expected to change the structure of electricity supply in the state, as the new PHEDC subsidiary will operate under a licence issued by AKSERC rather than directly under NERC.
The move follows the inauguration of the Akwa Ibom State Electricity Regulatory Commission by Governor Umo Eno in June 2026.
At the time, Eno said the commission was established to drive 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 a state electricity distribution structure.
The decentralisation of electricity regulation followed constitutional amendments and the enactment of the Electricity Act 2023, which empowered states to make laws and establish regulators for electricity generation, transmission and distribution within their territories.
NERC had earlier listed Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra and Bayelsa among the states that had completed their transitions as of May 2026.
Gombe subsequently completed its transition, bringing the number of states to 16 before the latest Akwa Ibom transfer order.
The reform is designed to move the regulation of local electricity markets closer to consumers and state governments while allowing individual states to develop policies and attract investments based on their electricity needs.
