Abia State has officially gained autonomy over its electricity sector following formal approval by the Nigerian Electricity Regulatory Commission (NERC) to independently regulate its power market. This significant development was announced on Wednesday via NERC’s official X (formerly Twitter) page and marks a key step in the decentralization of Nigeria’s electricity industry under the Electricity Act 2023.
With this approval, the newly established Abia State Electricity Regulatory Authority (ASERA) takes over regulatory control from NERC, empowering the state to manage electricity generation, transmission, and distribution within its borders. Abia becomes the 10th state to secure such authority, joining Imo, Enugu, Ekiti, Ondo, Oyo, Edo, Kogi, Ogun, and Niger states.
According to the directive, Enugu Electricity Distribution Company (EEDC)—which currently supplies electricity in Abia—must establish a new subsidiary, EEDC SubCo, within 60 days from June 25, 2025. This new company will handle intrastate power distribution and must obtain a licence from ASERA. The entire transition process is to be completed by December 24, 2025.
The decision follows Abia State’s compliance with all stipulated legal requirements, including the signing of the Abia State Electricity Bill into law by Governor Alex Otti on March 17, 2025. The move grants the state authority to license electricity operators, set tariffs, and enforce operational standards without direct federal oversight, except for interstate or international power matters.
Stakeholders have welcomed the development as a leap toward improved service delivery, more investment, and accountability in Abia’s power sector. However, experts have stressed the need for ASERA to develop the regulatory strength required to manage the transition effectively and ensure stable service delivery.
This autonomy is especially promising for commercial hubs like Aba, which has historically struggled with erratic power supply. The reform is expected to attract new investments, promote local economic growth, and potentially lead to a more reliable electricity infrastructure across the state.
