NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Twenty-one states, including Rivers State and Kano State, have yet to assume full regulatory control of their electricity markets nearly three years after the enactment of the Electricity Act 2023, even as 15 states have successfully transitioned to independent electricity regulation under Nigeria’s decentralised power framework.

The Nigerian Electricity Regulatory Commission (NERC) confirmed that the 15 states that have completed the transition now operate their own electricity markets, handling tariff regulation, licensing, investment promotion, and consumer protection within their jurisdictions.

The reform is part of the broader implementation of the Electricity Act 2023, which decentralises Nigeria’s power sector by empowering states to regulate generation, transmission, and distribution within their territories after meeting legal and institutional requirements.

15 states now operating independent electricity markets

According to NERC, 15 states have fully completed the transition process and are now independently regulating their electricity sectors. These states include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, and Bayelsa.

The commission explained that the transition began in October 2024 with Enugu and Ekiti, followed shortly by Ondo. The process gained momentum in 2025, with states such as Lagos, Oyo, Ogun, and Edo completing their transitions. More recent entries include Nasarawa, Anambra, and Bayelsa in early 2026.

Under the new structure, these states now oversee intrastate electricity regulation, including issuing licenses, enforcing technical standards, setting local tariffs, and protecting electricity consumers.

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21 states yet to complete transition

However, 21 states are yet to complete the process of taking over regulatory control of their electricity markets. These include Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe, and Zamfara.

Energy experts say the delay could slow down the expected benefits of the Nigeria electricity sector reform, including improved power supply, localised tariff structures, and increased investment in mini-grids and embedded generation projects.

They also warn that uneven implementation could widen disparities in electricity access and investment across states.

What the Electricity Act 2023 provides

Under the Electricity Act 2023, once a state completes its transition, it establishes its own electricity regulatory commission responsible for overseeing all intra-state electricity operations.

The national regulator, NERC, retains oversight of interstate electricity trade and the national grid system.

State regulators are expected to drive local electricity market development by encouraging private investment, supporting renewable energy projects, and ensuring service quality standards across distribution networks.

However, NERC noted that some states that have declared transition still need to fully operationalise their regulatory institutions.

Federal government push for decentralisation

The Federal Government has repeatedly encouraged states to accelerate adoption of the reform, describing decentralisation as essential to solving Nigeria’s long-standing electricity challenges.

Minister of Power, Adebayo Adelabu, said Nigeria’s size and population make centralised electricity management ineffective.

He explained that the Electricity Act allows states to participate in all segments of the power sector value chain, including generation, transmission, distribution, and supporting services.

Adelabu also stressed the importance of collaboration between federal and state regulators to ensure alignment between wholesale and retail electricity markets.

He added that state participation is especially critical in off-grid electrification and rural power projects, where flexible local regulation can improve access and attract investment.

Outlook for Nigeria’s power reform

Stakeholders say the success of Nigeria’s electricity decentralisation reform will depend on how quickly the remaining 21 states establish functional regulatory frameworks and fully activate their electricity markets.

They warn that delays may limit investment inflows and slow down efforts to improve electricity supply reliability across the country.

Despite the uneven progress, the Electricity Act 2023 remains one of the most significant structural reforms in Nigeria’s power sector, aimed at creating a more competitive and efficient electricity market.

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Naira Stabilises at ₦1,345/$ as FX Market Confidence Grows 

The Nigerian Naira continued its steady run in the foreign exchange market on Tuesday, April 21, 2026, as early trading reflected growing confidence and sustained efforts to narrow the gap between official and parallel market rates.

At the official window, figures from the Nigerian Foreign Exchange Market (NFEM) showed the local currency trading at an average of ₦1,345.47 per dollar, marking a slight appreciation compared to the previous session. Intraday data indicated the Naira briefly strengthened to around ₦1,345.87/$, supported by stable demand and consistent interbank activity.

This performance highlights the impact of ongoing reforms by the Central Bank of Nigeria, which has focused on exchange rate transparency, liquidity management, and market-driven pricing. These policies are gradually restoring investor confidence and improving supply conditions in the official FX market.

Across the parallel market, the trend of relative calm persisted. In major trading hubs including Lagos, Port Harcourt, and Kano, the dollar traded between ₦1,390 and ₦1,405, reflecting a modest premium over the official rate.

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While the black market rate remains higher, the gap between both segments has continued to narrow, signaling progress toward exchange rate convergence. Compared to previous months marked by volatility and sharp swings, the current market environment is more stable, offering improved predictability for businesses and individuals relying on foreign exchange.

Analysts attribute the Naira’s resilience to stronger foreign exchange inflows, including increased participation from foreign portfolio investors, improved oil revenue receipts, and steady diaspora remittances. These factors have enhanced liquidity and reduced pressure on the local currency.

However, experts caution that external risks remain. The global strength of the US dollar and fluctuations in international oil prices could still influence Nigeria’s FX outlook in the near term.

For businesses and consumers, today’s Dollar to Naira exchange rate suggests a phase of consolidation, with fewer sharp fluctuations and more stability for financial planning. The current trajectory reinforces cautious optimism that Nigeria is moving toward a more unified and stable foreign exchange system.

Naira Stabilises at ₦1,345/$ as FX Market Confidence Grows

How Middle East Tensions Are Raising Living Costs in Nigeria – Finance Minister

Nigeria’s Minister of Finance, Wale Edun, has revealed how the ongoing US–Israel–Iran conflict is fueling inflation in Nigeria, triggering widespread economic pressures on households and businesses.

Speaking after the IMF/World Bank Spring Meetings, Edun said the geopolitical crisis has unleashed external shocks that are disrupting global energy markets, tightening financial conditions, and worsening the cost of living in Nigeria.

He explained that the crisis is unfolding at a critical time when Nigeria is implementing major economic reforms aimed at stabilising the economy, attracting investment, and lifting millions out of poverty.

According to Edun, one of the most immediate impacts has been the sharp rise in global oil prices, driven by supply disruptions around key transit routes such as the Strait of Hormuz. Nigeria’s Bonny Light crude, he noted, surged from about $70–$73 per barrel to highs exceeding $110–$120.

This spike has translated directly into higher domestic fuel costs, worsening energy prices in Nigeria.

“Volatility in global energy markets is already influencing domestic energy-related commodities, with direct implications for prices and the standard of living of Nigerians,” he said.

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Edun disclosed that petrol prices increased by over 50 percent—from about ₦890–₦900 per litre to between ₦1,260 and ₦1,330—while diesel prices jumped by more than 70 percent, rising from around ₦1,100 to nearly ₦1,550 per litre at peak levels.

The surge in fuel prices has triggered a ripple effect across the economy, significantly increasing transportation costs and pushing up food prices in Nigeria. Businesses are also grappling with higher production and logistics costs, which are being passed on to consumers.

As a result, inflation in Nigeria continues to climb, placing additional strain on households already facing economic hardship.

Beyond energy costs, the minister highlighted tightening global financial conditions as another major concern. He said geopolitical uncertainty has led investors to shift funds to safer economies, reducing capital inflows into emerging markets like Nigeria and putting pressure on the naira.

Despite these challenges, Edun said Nigeria is better positioned to withstand the current shocks compared to previous crises such as the COVID-19 pandemic and the Russia–Ukraine war.

He pointed to ongoing reforms—including fuel subsidy removal, exchange rate adjustments, and fiscal restructuring—as measures that have strengthened the country’s macroeconomic outlook.

Edun reaffirmed the government’s commitment to maintaining macroeconomic stability in Nigeria, attracting both local and foreign investments, and expanding social protection programmes to cushion vulnerable populations.

He also called for increased international support from institutions such as the International Monetary Fund and the World Bank, stressing that countries undergoing economic transitions need additional backing to navigate global uncertainties.

In summary, the finance minister warned that while Nigeria is making progress through reforms, the US–Israel–Iran conflict is significantly driving inflation, rising fuel prices, and cost of living increases in Nigeria, underscoring the need for coordinated domestic and global responses.

How Middle East Tensions Are Raising Living Costs in Nigeria – Finance Minister