Nasarawa State Takes Charge of Electricity Regulation from Federal Authority

Nasarawa State has officially assumed regulatory control over its electricity market, marking a pivotal moment in Nigeria’s energy sector. This shift follows provisions in the 2023 Electricity Act, which decentralised electricity regulation, empowering state governments to oversee power generation, transmission, and distribution within their boundaries. The move is intended to foster improved electricity access, efficiency, and tailored solutions for local challenges.

With this development, the Nasarawa State Electricity Regulatory Commission (NASERC) has become the central body responsible for issuing licenses to operators, overseeing power supply quality, and ensuring consumer protection. The state government emphasized that this transition would allow for faster decision-making and encourage investments that align with the region’s unique needs and opportunities.

Officials noted that this move is not merely administrative but strategic. By handling its own electricity regulation, Nasarawa aims to reduce power outages, attract private-sector investment, and support economic development. The government plans to engage communities, businesses, and development partners in a collaborative effort to build a more reliable and efficient power network.

Under the new arrangement, electricity distribution companies currently operating in the state are expected to restructure their operations by establishing subsidiaries that will comply with state-level regulations. This includes applying for new licenses under NASERC’s supervision, revising service obligations, and aligning tariffs with the socio-economic realities of the state.

The transition also calls for a strong institutional framework. NASERC is expected to develop regulatory tools and standards that are transparent, fair, and consistent. Training and capacity-building efforts are underway to equip the commission’s staff with the expertise needed to perform oversight duties effectively.

Industry stakeholders have reacted positively to the development, describing it as a timely intervention that could stimulate the energy sector. Many believe state-level regulation will result in improved service delivery, particularly in rural areas where federal oversight has historically been less responsive. Entrepreneurs and manufacturers have also welcomed the change, noting that reliable power is essential for business growth.

However, experts warn that decentralisation must be handled carefully to avoid regulatory overlap, inconsistencies, or conflict between federal and state entities. Coordination between NASERC and national agencies like the Transmission Company of Nigeria will be critical to ensuring seamless interconnectivity, especially for cross-border electricity trading and grid management.

The Nasarawa government has assured that it is prepared to handle the responsibility. The administration revealed plans to attract investment in off-grid and renewable energy solutions, especially solar power projects in underserved communities. Several international development agencies are reportedly in discussions with the state on possible collaborations to expand access.

Legal experts noted that the transfer of regulatory authority is consistent with constitutional amendments that give states autonomy over electricity matters. Nasarawa is now among a growing list of states, including Edo, Lagos, and Ekiti, that have activated their rights to manage power within their jurisdictions.

The federal government has expressed support for the new model, viewing it as a way to improve electricity delivery in Nigeria’s diverse regions. It believes that allowing states to chart their own energy paths will ultimately create a more competitive and resilient national electricity market.

In conclusion, Nasarawa State’s assumption of electricity regulatory control is a landmark step in Nigeria’s evolving power sector. The success of this decentralised approach will depend on how well the state balances investor needs, consumer protection, and infrastructure development. If managed effectively, this could serve as a model for other states and contribute significantly to solving Nigeria’s long-standing power supply challenges.