Power
Ogun seeks NERC guidance for state electricity market takeover
Delegates from the Ogun State Electricity Regulatory Commission visited federal regulators in Abuja to prepare for full oversight of the intrastate power sector.
Key points
- OGSERC leadership visited NERC headquarters in Abuja.
- Discussions focused on capacity building, tariff setting and consumer protection.
- The transition follows decentralisation under the Electricity Act 2023.
What happened
The Ogun State Electricity Regulatory Commission has initiated formal discussions with the Nigerian Electricity Regulatory Commission to secure institutional backing ahead of its assumption of full regulatory responsibilities for the state's power network. According to Punch reporting, an OGSERC delegation headed by Chairman-Designate Engr Jide Onakoya met with NERC Chairman Dr Musiliu Oseni at the federal commission's headquarters.
The engagement centred on establishing robust operational frameworks, sharing technical knowledge, and adopting best practices for regional energy regulation. Both institutions highlighted the importance of structured mentorship as subnational authorities prepare to govern their respective intrastate electricity markets following the enactment of the Electricity Act 2023.
Next steps in regulatory devolution
During the meetings, officials identified several operational priorities requiring federal technical assistance. These include tariff determination methodologies, consumer grievance mechanisms, and overarching market surveillance. NERC stated that the collaboration aims to foster an investment-friendly climate within Ogun State while safeguarding the interests of local electricity consumers.
The transfer of oversight represents a significant step in the broader decentralisation of Nigeria's power supply industry. State-level regulators are gradually stepping in to supervise distribution networks within their borders, aiming to improve responsiveness and tailor regulatory oversight to local economic conditions.
Why it matters
The decentralisation of the power sector is critical for addressing long-standing supply deficits across Nigeria, where electricity use per person stood at 140.6 kWh in 2024, according to World Bank figures, compared to a global average of 3708.5 kWh. With national grid reliability remaining a challenge, state-level governance of intrastate networks offers a pathway to attract targeted private capital and improve regional access, which was recorded at 62.5 percent nationally in 2024 by the World Bank. For investors and policymakers, effective capacity transfer from NERC to bodies like OGSERC will determine whether subnational power markets can deliver reliable generation and distribution.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
