Seven Nigerian states – Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi, have officially taken over regulation of their electricity markets, marking a major shift in how power is managed across the country.

This change comes under the 2023 Electricity Act, which allows states to license and manage electricity generation, transmission, and distribution on their own, breaking NERC’s long-standing monopoly.

More states, including Lagos, Ogun, Niger, Plateau, and Anambra, are preparing to follow suit by September.

Experts are hopeful this could attract investment and improve service delivery. But there are big concerns too: many states lack the technical capacity, legal frameworks, and skilled manpower to run their own power sectors effectively.

Still, local regulators are already taking action. In Enugu, a power distributor was recently sanctioned for overbilling, showing that some states are ready to enforce the rules.

The reforms have sparked debate, some see it as a bold move toward decentralisation and better accountability, while others warn it could lead to fragmented, poorly run markets without stronger oversight and coordination.