By Bassey Udo
“Electricity regulation sets rules, holds licensees to account and protects consumers. It does not by itself add generation capacity or rebuild networks, but by bringing certainty of rules and ensuring that licensees and consumers behave appropriately, it enables the environment in which investments can be made to grow and sustain reliable electricity access for all citizens for their public and private purposes. This transfer will ensure that decisions affecting Akwa Ibom consumers about electricity business conducted within Akwa Ibom will be taken in Akwa Ibom by an Akwa Ibom Commission answerable to the people of Akwa Ibom State, on evidence produced and delivered in Akwa Ibom. Improvement in supply and quality of service will follow from investment and disciplined execution over time, the Commission will report publicly on progress and citizens will see for themselves how this evolves.”
These were the words of the Chairman/Chief Executive Officer, Akwa Ibom State Electricity Regulatory Commission (AKSERC), Arit Uya, in the notice to the public on August 20, 2026 concerning the transfer of regulatory oversight of the Akwa Ibom State Electricity Market through the Nigerian Electricity Regulatory Commission (NERC) Order No. NERC/2026/087 of August 18, 2026)
The statement highlighted the commitment of the State Commission to take advantage of the amendment of the provisions of the Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023, which finally allowed the transfer of regulatory powers in the Nigerian Electricity Supply Industry (NESI) to the States to the benefit of electricity consumers in Akwa Ibom.
For Akwa Ibom, the decision by the Federal Government to relinquish control of the entire value chain in the electricity supply -generation, transmission and distribution -making it possible for state governments to be involved in the operation of the sector, could not have been a more welcoming development.
It’s an opportunity for the state government to realize its long cherished dream of getting involved in the development of the power sector in the economy.
The state was the first among the sub-national governments’ attempt to break the Federal Government monopoly in the power sector through its foresighted investment in the development of the 191 megawatts (MWs) capacity Ibom Power Plant.
It was the dream of the then Obong Victor Attah’s administration that the development of the Ibom Power project would make available the energy resources required for the take off of the state’s industrialisation drive.
However, the provisions of the Electricity Act had limited the powers of the state government to electricity generation only.
Consequently, in compliance with the provisions of the Act, all electricity generated from Ibom Power plant could only be evacuated and injected into the national grid for distribution to consumers across the country.
That arrangement posed a legal setback to the original intention behind the Akwa Ibom State government’s decision to service only consumers in the state and its environs.
That is why the recent amendment of the Act, which decentralized the running of the NESI by allowing state governments to participate in the operation of all segments of the electricity sector value chain has a significant meaning to the state.
Birth of AKSERC
To show how seriously the government is taking the regulatory transition process, the state is the 17th among the 36 States and the Federal Capital Territory to receive the nod of the NERC transferring electricity market regulatory oversight functions.
The transfer by NERC empowers the State Electricity Regulators (SERs) to take full responsibility of driving local market growth, investments and ensuring robust customer protection.
The transfer of the regulatory powers followed the inauguration by the state government of a five-member Board for AKSERC in June 2026.
The Board is headed by a former Assistant General Manager at NERC, Arit Uya, as its Chairman/Chief Executive Officer, who is also the Commissioner for Stakeholder Engagement and Consumer Affairs.
Other members of the Board include Dr. Kalu Ukoha, as Vice Chairman, who doubles as the Commissioner for Policy, Planning and Innovation; Engr. Ubong Etukudoh as Commissioner, Engineering Services; Dr. Valerie Obot as Commissioner, Finance and Corporate Support, and Mr. Paul Okon as Commissioner in charge of Economic Regulation.
AKSERC’s mandate
At the inauguration of the Board, the state governor, Pastor Umo Eno, said members were mandated to overhaul the state’s power sector within 18 months, to meet public demand and drive economic growth through reliable electricity supply.
The mandate of the Board, which include serving as the sole regulator of all electricity business conducted between buyers and sellers within Akwa Ibom State, covers the regulation of electricity market activities, operators, transactions and services in accordance with the Constitution of the Federal Republic of Nigeria, the Electricity Act, 2023, and the Akwa Ibom State Electricity Law, 2025.
The mandate was part of the strategic roadmap for the Akwa Ibom Electricity Sector Reform Programme adopted during the September 2025 Electricity summit aimed at achieving energy security, industrial expansion and sustainable economic development.
The setting up of the AKSERC was a demonstration of the resolve by the state government to build a modern, competitive and efficiently regulated electricity market to serve the needs of the people and attract investment into the sector.
To realize its mandate, Governor Eno charged the Board to liaise with NERC and other relevant Federal Ministries, Departments and Agencies to secure the transfer of the full extent of Akwa Ibom State’s electricity regulatory powers.
Also, the Board was asked to engage with the Port Harcourt Electricity Distribution Company ( PHEDC), which holds the electricity distribution franchise covering Akwa Ibom and its environs under the existing operational arrangement in the NESI, towards establishing a credible successor State electricity distribution company that would guarantee fair, transparent and commercially credible sector in the state.
“Our objective is to create an environment where operators, investors and licensees are incentivised to deliver reliable, affordable and sustainable electricity, while protecting consumer interests and promoting economic growth,” the governor said.
Also, the government is “positioning the Akwa Ibom State Electricity Market as a credible and competitive component of the Nigerian Electricity Supply Industry”, he added.
Beyond AKSERC
Beyond the inauguration of the Board, the state government has already incorporated the Ibom Electricity Holding Limited (IEHL) as the strategic special purpose vehicle for managing State electricity assets and investments, while the regularisation of Akwa Ibom State’s shareholding interests in 4Power Consortium Limited, operators of Ibom Power, and the Port Harcourt Electricity Distribution Company as a precursor to the establishment of a dedicated Akwa Ibom State electricity distribution subsidiary.
In August, NERC formally issued its Order No. NERC/2026/087 to transfer its regulatory oversight functions of the Akwa Ibom State Electricity Market to AKSERC.
Although NERC would, under the amended provisions of the Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), continue to exercise its role as a central regulatory authority with oversight on the inter-state/international generation, transmission, supply, trading and system operations, AKSERC will begin to exercise its full regulatory powers after the completion of the transition process from February 17, 2027.
Prior to that deadline, NERC directed the Port Harcourt Electricity Distribution Plc (PHEDC) to immediately, within 60 days from August 18, 2026, incorporate a subsidiary (PHEDC SubCo) to assume responsibilities for intra-state supply and distribution of electricity in Akwa Ibom State.
Despite the transition, NERC said the PHEDC, which holds the electricity distribution franchise covering Akwa Ibom, Cross River, Rivers and Bayelsa States, would continue to supply, meter and bill customers in the State, adding that all existing accounts, meters, and payment channels would remain valid.
Tariffs remain despite transition
Meanwhile, the existing electricity tariffs set by NERC under the national Service-Based Tariff (SBT) framework under the PHED franchise will remain, although in a transition pending when AKSERC takes full regulatory control to determine tariff rates, methodologies, and regulations for state-licensed undertakings in terms of generation, transmission, distribution and electricity supply within the state.
Any future review of the tariffs, NERC clarified, would be undertaken by AKSERC in line with due regulatory processes, including a comprehensive regulatory review of the cost structure.
Also, all existing contracts and obligations, licences, permits and agreements would be transitioned to be performed by the Akwa Ibom electricity distribution company, which is vested with the power to negotiate or regulate Power Purchase Agreements (PPAs) or embedded generation tariffs on behalf of the state to Ibom Power.
In terms of regulatory authority for electricity business conducted within Akwa Ibom State, NERC said it would work with AKSERC to ensure a smooth transition of regulatory authority.
By October 17, 2027, PHED is expected to complete the incorporation of a subsidiary electricity distribution company for Akwa Ibom State before applying to AKSERC for a licence to supply and distribute electricity within the State.
During the transition period, NERC said the Akwa Ibom electricity distribution and transmission network would be identified and separated, with metering installed at appropriate identified technical boundary points and the assets, liabilities, contracts and employees attributable to the State transferred to the Akwa Ibom electricity distribution company.
By the end of the transition period, NERC said full regulatory responsibilities for the intra-state electricity market would be passed to AKSERC as required by the 1999 constitution (as amended).
“Responsibility for the Akwa Ibom intra-state market, including consumer protection and dispute resolution, therefore remains with NERC until the transfers are completed, and AKSERC does not assume those responsibilities before that date,” NERC said.
“Consumers should continue to raise supply, billing and metering matters with PHED in the first instance, while the existing escalation arrangements under NERC’s consumer protection framework would remain in place.
“AKSERC will work with PHED and with NERC throughout the transition so that complaints and disputes affecting consumers in the State are resolved, and consumers may bring matters to the Commission’s attention.
“When the transfer process is completed, expectedly by 17th February 2027, these responsibilities would become AKSERC’s, while the Commission will publish its customer care framework, including a complaints procedure, in good time.
In line with Section 230(9) of the Electricity Act, which mandates AKSERC and NERC, along with all other State electricity regulatory bodies, to continue their statutory duty under the Electricity Act, NERC said it would continue to regulate all cross-border or inter-State electricity transactions to cooperate to ensure that regulatory risks across the Federal and State electricity markets were minimised.
As the regulatory transition is shaping up, the electricity regulations would set rules, hold licensees to account and protect consumers in the state.
Although AKSERC noted that the transition would not increase its electricity generation capacity, or rebuild networks, one possibility will be the certainty of rules that would be established to ensure that licensees and consumers behaved appropriately
In that atmosphere the state would have realised its prime objective of creating an enabling environment in which investments would bring growth as well as sustain reliable electricity access for all citizens for their public and private purposes.
In terms of infrastructure, one of the key challenges the AKSERC is facing is that of deficiencies in transmission lines and grid integration.
To enable AKSERC to take full control of the sector, those issues that were at the heart of the challenges that made it difficult for the Federal Government to evacuate and distribute the entire volume of electricity generated in the country must be fixed.
One of such issues is strengthening the weak electricity transmission and distribution systems. The AKSERC will have to disconnect from the national grid and install new intra-state electricity transmission infrastructure to be managed in accordance with its approved regulatory standards.
Also, AKSERC will establish a fresh legal framework defining the terms and conditions of its operational relationship with the electricity distribution companies doing business within the state’s franchise area.
