The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Bayelsa State to the Bayelsa State Electricity Regulatory Agency (BYERA), marking another major step in Nigeria’s power sector decentralisation.
NERC made the announcement in a statement released on Monday through its official social media platforms, noting that the decision aligns with the provisions of the amended 1999 Constitution and the Electricity Act 2023. The commission explained that the law empowers states to take charge of electricity generation, transmission, and distribution within their borders once they have established their own regulatory agencies.
“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 Bayelsa State from the Commission to the Bayelsa State Electricity Regulatory Agency,” the commission stated.
The Electricity Act 2023 clearly spells out NERC’s role as the central regulator for interstate and international electricity generation, transmission, supply, trading, and system operations. However, the law also gives states the authority to establish intrastate electricity markets provided they notify NERC formally. Once the processes are completed, NERC is required to hand over regulatory authority to the state’s regulator.
As part of the transition process in Bayelsa, NERC directed the Port Harcourt Electricity Distribution Company (PHED), which currently covers Bayelsa under its franchise, to set up a new subsidiary company dedicated solely to electricity distribution in the state. The order mandates PHED to complete the incorporation of the new company, known as PHED SubCo, within 60 days from August 21, 2025.
The commission added that the newly formed subsidiary must apply for and obtain a licence from BYERA for the intrastate supply and distribution of electricity. NERC further disclosed that all processes relating to the transfer must be completed by February 20, 2026.
The move positions Bayelsa among a growing list of states that have taken control of their electricity markets under the new law. Other states that have already secured similar regulatory powers include Lagos, Imo, Ogun, Ondo, Ekiti, Enugu, Niger, Edo, Oyo, and Plateau. With the transfer, Bayelsa will now have the authority to issue licences to investors, manage local power distribution, and potentially develop new generation projects to boost supply.
Industry analysts say the decentralisation policy is expected to attract fresh investment into state-level power projects, reduce dependence on the national grid, and improve electricity supply in underserved areas. For Bayelsa, which has long battled inadequate power supply despite its oil-rich status, the move is being seen as an opportunity to chart a new course in energy development.
NERC’s directive also underscores the broader reforms taking place in Nigeria’s power sector. The Federal Government has been working to encourage more private and state-level investment into electricity infrastructure as part of efforts to address decades of underperformance. The 12,000MW Siemens power project, which entered its second phase recently, and the push for independent state regulation both reflect this new strategy.
Observers, however, caution that the success of Bayelsa’s electricity market will depend on how quickly BYERA can establish strong regulatory frameworks, attract investment, and enforce compliance among operators. There are also concerns about whether the new subsidiary to be created by PHED will have the financial and technical capacity to deliver steady power supply without repeating the inefficiencies of existing distribution companies.
For residents of Bayelsa, expectations are rising that local control will translate into more reliable electricity, better metering, and improved service delivery. The state government is now expected to work closely with BYERA and private sector investors to ensure that the new regulatory independence delivers tangible benefits.
By February 2026, when the transition is scheduled to be completed, Bayelsa will fully join the group of states managing their electricity markets. The development is being viewed as a landmark moment for the state, with potential ripple effects on its economy, job creation, and industrial growth.
