Gombe Takes Over Electricity Regulation as NERC Hands Market Oversight to State

Gombe State has formally assumed regulatory control of its electricity market following the transfer of oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Gombe State Electricity Regulatory Commission (GOSERC).

The transfer, effected through an order issued by NERC, removes Gombe from the commission’s direct regulation of intrastate electricity activities and marks another step in the decentralisation of Nigeria’s power sector under the amended Constitution and the Electricity Act 2023.

In a public notice issued on Wednesday, NERC said the decision followed Gombe State’s compliance with all statutory requirements, including formal notification and a request to assume regulatory authority over electricity operations within the state.

NERC explained that while it retains its role as the central regulator for interstate and international electricity generation, transmission, trading and system operations, states are now empowered by law to establish and regulate their internal electricity markets.

The notice read in part: “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Gombe State from the commission to the Gombe State Electricity Regulatory Commission.”

It added that the Electricity Act 2023 mandates any state seeking to regulate intrastate electricity markets to notify NERC of its processes and formally request the transfer of regulatory authority, a requirement Gombe State fulfilled.

As part of the transition framework, NERC directed Jos Electricity Distribution Plc (JED) to incorporate a subsidiary company to handle intrastate electricity supply and distribution in Gombe State. The new entity, to be known as JED SubCo, is to be incorporated within 60 days from January 7, 2026.

According to the order, JED SubCo is required to apply for and obtain an intrastate electricity licence from GOSERC, while all transfers and restructuring envisaged under the order must be completed on or before July 6, 2026.

“The transfer order directs Jos Electricity Distribution Plc to incorporate a subsidiary to assume responsibilities for intrastate supply and distribution of electricity in Gombe State,” the commission stated.

Gombe’s entry into state-level electricity regulation adds to a growing list of states taking advantage of recent constitutional and legal reforms to assume control of their power markets. Since the passage of the Electricity Act 2023, at least 12 states — including Lagos, Edo, Enugu, Ondo, Ekiti, Oyo, Plateau, Imo and Cross River — have either established electricity regulatory commissions or are at advanced stages of doing so.

The reform represents a major shift from Nigeria’s historically centralised electricity governance structure, enabling states to design tariffs, issue licences, attract private investment and regulate electricity distribution and supply based on local needs.

While the move is expected to improve electricity access, service delivery and investment, particularly in renewable and embedded generation, concerns remain over coordination between federal and state regulators, regulatory fragmentation and the financial health of distribution companies adapting to state-based operations.

NERC said the full transfer order for Gombe State is available on its website.