OGUN ELECTRICITY REGULATOR SEEKS NERC SUPPORT AHEAD OF MARKET TAKEOVER

The Ogun State Electricity Regulatory Commission has sought the support of the Nigerian Electricity Regulatory Commission (NERC) as the state prepares to assume greater regulatory control of its electricity market.

The move is part of efforts to establish a state-level regulatory framework that will enable Ogun to oversee electricity distribution and related market activities within its jurisdiction.

The commission is expected to work with NERC to ensure a smooth transition, strengthen regulatory capacity and establish clear operational arrangements for electricity market participants.

The development follows Nigeria's electricity sector reforms, which allow states to establish their own electricity markets and regulate electricity operations within their territories, subject to the provisions of the Electricity Act 2023.

Under the new framework, states can take greater responsibility for electricity regulation, creating opportunities to develop solutions that reflect local energy needs and attract investment into power generation and distribution.

For Ogun State, the transition could provide greater flexibility in addressing electricity challenges affecting households, businesses and industries.

The state is home to several manufacturing and commercial centres whose operations depend heavily on reliable electricity supply. Improved regulatory oversight could help create an environment for increased investment and more efficient service delivery.

However, a successful transition will require effective coordination between the state regulator, NERC, electricity distribution companies and other market operators.

The commission's request for federal regulatory support highlights the importance of institutional cooperation as states take steps towards managing their electricity markets.

Ogun's planned market takeover is expected to form part of broader efforts to improve electricity access, encourage competition and strengthen the state's economic development.