Four States to commence electricity generation, distribution

The Nigerian Electricity Regulatory Commission (NERC) has confirmed the readiness of four state governments to take over the generation, transmission and distribution of electricity in the state, as it conclude the transfer of regulatory oversight to the states.

Diaspora Digital Media learnt the four State are Enugu, Ekiti, Ondo and Imo.

Announcing the development via a post on X, the commission said that the transfer process was still ongoing for six states including Oyo, Edo, Kogi, Lagos, Ogun and Niger.

“As at January 10, 2025, NERC has commenced the transfer of regulatory oversight to 10 states.

“Once the transfers are complete, the states will be in charge of regulating their electricity markets.

“The 10 states are: Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun and Niger.

“The transfers have been completed for 4 states, namely Enugu, Ekiti, Ondo, and Imo, while 6 states are still in progress,” the commission stated.

The transfer of regulatory oversight by NERC is in compliance with the Electricity Act (EA) 2023.

The Act empowers state governments, individuals to actively participate in electricity generation, transmission and distribution.

The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification.

The notification must be sent to NERC transfer regulatory authority over electricity operations in the state to the State Regulator.

According to NERC, state governments are expected to comply with the conditions precedent in the laws.

They must duly notify the commission and request for the transfer of regulatory oversight of the intrastate electricity market in the state.

With the EA 2023, the Commission retains its role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

Power generation problem in Nigeria

Nigeria’s power generation problem is a longstanding issue, with the country struggling to provide adequate electricity supply to its citizens.

Despite having an installed power generation capacity of around 12,522 megawatts (MW), the available capacity is significantly lower, around 4,000-5,000 MW.

This has resulted in widespread power outages, affecting businesses, industries, and households across the country.

The transmission network is another major challenge, with significant losses due to inefficiencies.

Nigeria’s transmission network loses around 7-10% of generated power due to technical and non-technical issues.

Furthermore, the distribution network is also inefficient, with significant losses due to technical and non-technical issues.

These challenges have hindered the country’s ability to provide reliable and adequate electricity supply to its citizens.

To address these challenges, the Nigerian government has implemented various initiatives, including the National Integrated Power Project (NIPP), the Power Sector Recovery Program (PSRP), and the Renewable Energy Master Plan.

The government has also set a target to generate 30% of its electricity from renewable sources by 2030.

However, despite these efforts, Nigeria’s power generation problem persists, and the country continues to face significant challenges in providing reliable and adequate electricity supply to its citizens.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook