Across Nigeria, a total of 21 states, among them Rivers and Kano, have not yet taken full responsibility for regulating their electricity markets, despite the fact that the Electricity Act 2023 has been in force for close to three years. In contrast, 15 states have already completed the process and now operate their own independent electricity oversight systems.
The Nigerian Electricity Regulatory Commission (NERC) explained that the states which have successfully concluded the transition now manage electricity governance within their territories. These state-level regulators handle key functions such as issuing operational licences, supervising market activities, attracting private investment, regulating tariffs, and ensuring consumer rights are protected.
This restructuring is a direct outcome of the Electricity Act 2023, which introduced a decentralised electricity framework. The law permits state governments to control electricity generation, transmission, and distribution within their domains once they satisfy required legal, institutional, and administrative conditions.
States that have already established independent regulatory authorities include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, and Bayelsa. These regions now operate their own electricity governance structures separate from federal control.
Meanwhile, the states yet to complete the shift include Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe, and Zamfara.
Energy sector observers have cautioned that delays in adoption by these remaining states may slow down the expected improvements in electricity supply, investment inflows, and development of renewable and off-grid energy solutions such as mini-grids, particularly in rural and underserved areas.
Under the restructured arrangement, any state that completes the transition gains authority over intrastate electricity operations. This includes licensing power providers within the state, enforcing technical and safety standards, setting retail electricity prices for distribution companies, and handling consumer complaints. At the same time, NERC continues to supervise interstate electricity flow and the national transmission network.
The regulator further noted that state agencies are expected to play a major role in expanding electricity access by encouraging private sector involvement, supporting renewable energy expansion, and improving the reliability of power distribution services within their jurisdictions.
According to the transition schedule, Enugu and Ekiti were the first to assume full regulatory independence in late 2024, followed by Ondo. Throughout 2025, additional states such as Oyo, Edo, Lagos, and Ogun joined the system. More recent entrants, including Nasarawa, Anambra, and Bayelsa, completed their transitions in early 2026.
Nevertheless, reports suggest that even some of the states that have formally transitioned are still working on fully establishing functional regulatory institutions and operational frameworks.
Industry analysts argue that states that continue to delay may miss out on opportunities to attract investments in decentralized energy solutions, especially projects targeting rural electrification and off-grid power supply.
They also believe that localized regulation could help address persistent inefficiencies in electricity distribution by allowing more flexible pricing systems, targeted subsidies, and enforcement strategies tailored to each state’s specific conditions.
With fewer than half of Nigeria’s states fully integrated into the new system, experts say the overall success of the reform will depend on how quickly the remaining governments set up their electricity regulatory bodies and activate full operational structures.
The federal authorities, meanwhile, have continued to encourage wider participation by states, insisting that centralized electricity management is no longer sufficient for a country of Nigeria’s size and complexity, and urging closer collaboration between state regulators and national institutions going forward.
