The Nigerian Electricity Regulatory Commission (NERC) has ordered the transfer of control of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
This order, signed by NERC Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, starts from 18 August 2026.
You can find the order on the commission’s website and its official Facebook page.
The order, numbered NERC/2026/087, tells the Port Harcourt Electricity Distribution Company (PHED) Plc to create a subsidiary focused on electricity supply and distribution in Akwa Ibom.
The move comes after the state government informed NERC that it met all legal requirements to take control of its internal electricity market under the Electricity Act 2023.
AKSERC will manage tariffs and consumer issues
With this new setup, AKSERC will be in charge of setting and adopting the end-user tariff rates within its area.
NERC stated that the final tariffs approved by AKSERC will be the only ones used in Akwa Ibom. The state government will still handle tariff policy for end-use customers.
AKSERC will also take over customer complaints, dispute resolution, and consumer protection in the state.
But NERC will keep its authority over transactions involving the national grid and services related to generation and transmission connected to the grid.
“The Commission exercises regulatory oversight of the Nigerian Electricity Supply Industry (NESI) as the main sector regulator according to the powers given by the Electricity Act 2023,” the order says.
NERC added that all transfers under this order must be finished by 17 February 2027.
PHED told to set up Akwa Ibom subsidiary
NERC instructed PHED to set up the new subsidiary, named PHED SubCo, within 60 days of the order starting.
This subsidiary will apply to AKSERC for a license to handle electricity supply and distribution within the state.
PHED is also required to define the geographical limits of its distribution area in Akwa Ibom and create a separate network in the state.
The company needs to install boundary meters where its network crosses into nearby states.
Additionally, it must compile a list of its electricity assets in Akwa Ibom, review contractual obligations and liabilities in the state, identify energy offtake points, and determine the staff needed for the new subsidiary.
NERC told PHED to transfer the identified assets, liabilities, and employees to PHED SubCo.
The commission will also keep a list of electricity licensees and other authorized operators in Akwa Ibom and inform those whose work is limited to the state about the regulatory change to AKSERC.
Eno’s electricity reform continues
This transfer is part of Governor Umo Eno’s electricity reform agenda, which began with the state’s electricity summit in September 2025.
At the summit, Eno emphasized that electricity should not be seen as a luxury but as essential for development. He also stated that access to electricity was key to his administration’s Arise Agenda, especially for rural development, as reported by this newspaper.
The summit led to a plan for creating a sub-national electricity market aimed at improving supply, attracting investment, and expanding access to underserved areas.
The state then passed the Akwa Ibom State Electricity Law 2025 and set up AKSERC.
In June 2026, Eno inaugurated the commission’s first five-member board and gave it 18 months to reform the state’s electricity sector.
He called AKSERC “the only regulator of all electricity business between buyers and sellers in Akwa Ibom State” and directed it to work with federal agencies and PHED to create a dedicated state electricity distribution company.
The governor also announced that the state had formed Ibom Electricity Holding Limited to manage state electricity assets and investments and was working to regularize its shareholding in 4Power Consortium Limited and PHED to create a dedicated state distribution subsidiary.
Changes are showing positive results
Akwa Ibom Commissioner for Information, Aniekan Umanah, told PREMIUM TIMES on Wednesday that this transfer marks a significant step in Eno’s electricity reforms.
“The achievement means a lot for the electricity reforms that Governor Eno has led. He started with the electricity summit, enacted the electricity law, developed the electricity policy, and then set up the regulatory commission,” he stated.
“It is a good day for Akwa Ibom because the reforms are starting to show results.”
This transition is part of the broader decentralization of Nigeria’s electricity sector allowed by the Electricity Act 2023, which lets states create and manage electricity markets in their areas.
NERC confirmed that its transfer of responsibility will not change its oversight of electricity activities involving interstate or international operations and transactions related to the national grid.
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