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Ogun State Gains Control Of Electricity Market As NERC Hands Over Regulatory Powers To OGERC

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In a development set to transform Nigeria’s energy landscape, the Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Ogun State’s electricity market to the Ogun State Electricity Regulatory Commission (OGERC). This historic move, announced on December 24, 2024, aligns with the amended Electricity Act 2023 (EA 2023) and the Constitution of the Federal Republic of Nigeria (CFRN), enabling Ogun State to manage its intrastate electricity market independently.

The transfer underscores Nigeria’s commitment to decentralizing its electricity sector. Under the EA 2023, states that meet specific requirements can regulate electricity generation, transmission, and distribution within their territories, while NERC retains control over inter-state and international electricity operations.

Ogun State has become the latest beneficiary of this legislative provision after complying with all stipulated conditions and formally requesting the handover of regulatory powers.

Key Provisions of the Transfer Order

Creation of State-Specific Subsidiaries

Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE), and Ibadan Electricity Distribution Company (IBEDC) are mandated to establish subsidiaries—EKEDP SubCo, IE SubCo, and IBEDC SubCo—to oversee intrastate electricity supply and distribution in Ogun State.

These subsidiaries are required to obtain operating licenses from OGERC.

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Implementation Timeline

The incorporation of the subsidiaries must be completed within 60 days of December 24, 2024.

The full transfer of regulatory oversight is scheduled for completion by June 23, 2025.

OGERC’s New Role

OGERC will oversee the licensing, regulation, and monitoring of the subsidiaries, ensuring improved efficiency and service delivery in Ogun State.

This transition is expected to drive significant improvements in electricity generation, distribution, and supply across Ogun State. Key anticipated outcomes include:

Enhanced Efficiency: Streamlined regulatory processes tailored to the state’s needs.

Increased Investment: Attracting private and public sector funding to expand electricity infrastructure.

Localized Solutions: Developing energy policies that address the specific needs of Ogun’s industries and residents.

Job Creation: Growth in the electricity sector is likely to generate employment opportunities.

A Model for Other States

With this transfer, Ogun joins Lagos in pioneering state-level control of electricity markets. The move is anticipated to inspire other states to explore similar frameworks, fostering localized solutions and decentralized energy management.

Energy experts have praised the transfer as a significant step towards energy independence for Ogun State. According to analysts, the move could position Ogun as a hub for industrial growth, given its proximity to Lagos and its role as a gateway state.

The success of this transfer will hinge on OGERC’s ability to manage the electricity market efficiently. The state government has assured residents and investors of its readiness to deliver reliable power supply and ensure that the transition benefits all stakeholders. 

For the full details of the transfer order, visit the NERC website.

https://x.com/NERCNG/status/1873755963670372722?t=btcY0anHsefgZHGJqZ4SEw&s=19

#OgunElectricityReform #OGERC #En

ergyDecentralization #ElectricityAct2023 #NigeriaEnergySector

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