The Nigerian Electricity Regulatory Commission has announced the transfer of regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission, marking another step in the decentralisation of Nigeria’s power sector.

Under the transfer order, the Port Harcourt Electricity Distribution Company Plc will establish a subsidiary to 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, stating that the transfer was made in compliance with the amended Constitution and the Electricity Act 2023.

The order makes Akwa Ibom the latest state to receive a 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 by July 2026.

The statement read, “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”) has issued an order to transfer regulatory oversight of the electricity market in Akwa Ibom State from the Commission to the Akwa Ibom State Electricity Regulatory Commission.”

With the Akwa Ibom order, the number of states that have received regulatory transfer orders has risen to 17, although the transition in Akwa Ibom is expected to be completed in February 2027.

NERC said the Electricity Act retained its role as the central regulator for electricity activities that cut across state boundaries.

The commission stated, “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.”

It explained that states seeking to establish and regulate their own intrastate electricity markets must first put the required legal and institutional framework in place before formally requesting NERC to transfer 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.

The commission said, “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.”

All the transfers envisaged under the order are expected to be completed by February 17, 2027.

The development means that AKSERC will eventually become the primary regulator of electricity activities within Akwa Ibom, while NERC will continue to regulate interstate and international electricity operations.

The transition is expected to alter 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, the governor said the commission was established to drive reforms in the state’s electricity sector and improve power supply, directing it 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 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 states to develop policies and attract investments based on their individual electricity needs.