The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Akwa Ibom State’s electricity market to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
The move is part of the ongoing decentralisation of Nigeria’s electricity sector under the amended Constitution and the Electricity Act 2023.
NERC announced the development in a public notice on Wednesday, making Akwa Ibom the 17th state to receive an order transferring regulation of its intrastate electricity market to a state regulator.
Under the order, Port Harcourt Electricity Distribution Company (PHEDC) is required to establish a subsidiary, PHEDC SubCo, to handle electricity supply and distribution within Akwa Ibom. The subsidiary will operate under a licence issued by AKSERC.
NERC directed PHEDC to complete the incorporation of the subsidiary within 60 days from August 18, 2026, and obtain the necessary licence from AKSERC.
The commission said all aspects of the regulatory transition are expected to be completed by February 17, 2027. AKSERC will thereafter oversee electricity activities within the state, while NERC will retain responsibility for interstate and international electricity operations.
“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 transfer follows the inauguration of AKSERC by Governor Umo Eno in June 2026. The commission was established to drive reforms, attract investment and improve electricity supply across the state.
NERC said states seeking control of their intrastate electricity markets must establish the necessary legal and institutional framework before requesting a transfer of regulatory authority. Gombe was the 16th state to complete the process before the latest Akwa Ibom order.
The decentralisation is expected to give state governments greater control over local electricity markets and enable them to develop policies and attract investments based on the specific power needs of their residents.
