The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of electricity activities within Gombe State to the Gombe State Electricity Regulatory Commission (GOSERC), marking another major step in the decentralisation of Nigeria’s power sector following recent constitutional and legal reforms.
The directive was contained in an order signed by the Chairman of NERC, Engr. Musiliu O. Oseni, and the Vice-Chairman, Mr Yusuf Ali. The order was published on NERC’s official website and confirms that Gombe State has met all the required legal and administrative conditions to take charge of regulating its intrastate electricity market.
According to the commission, the Gombe State Government formally initiated the process in line with the recent amendment to the Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act (EA). These reforms allow states to regulate electricity generation, distribution and supply within their boundaries, provided they meet certain requirements. NERC noted that Gombe State complied with all conditions precedent under the law and formally notified the commission of its intention to assume regulatory oversight.
With this development, GOSERC will now be responsible for regulating electricity supply, distribution and related activities that take place entirely within Gombe State. This means decisions on tariffs, licensing and market operations for intrastate electricity will now be handled at the state level, rather than by the federal regulator.
As part of the transition, NERC directed Jos Electricity Distribution Plc (JED), the current distribution company serving Gombe State, to restructure its operations. The commission ordered JED to incorporate a subsidiary company under the Companies and Allied Matters Act (CAMA) that will take over responsibility for electricity supply and distribution within Gombe State. This subsidiary, to be known as JED SubCo, is expected to operate strictly within the state’s borders under the supervision of GOSERC.
NERC stated that JED must complete the incorporation of JED SubCo within 60 days from the effective date of the order. After incorporation, the new company is required to apply for and obtain an operating licence from GOSERC before it can officially commence intrastate electricity operations in the state.
In addition, the commission instructed JED to clearly define and separate its electricity network in Gombe State from its networks in other states. This involves identifying the exact geographic boundaries of Gombe State and carving out the electricity infrastructure within the state as a standalone network. NERC also directed that boundary meters be installed at all points where the Gombe network connects with networks in neighbouring states, to ensure accurate measurement and accountability.
On tariff regulation, the order made it clear that GOSERC will have exclusive authority to determine and adopt the end-user tariff methodology applicable within Gombe State. This means electricity prices paid by consumers in the state will now be set by the state regulator, based on its approved methodology and local market conditions.
However, NERC clarified that where JED SubCo receives electricity from grid-connected generation plants, the contracts and tariffs for generation and transmission services will still require approval from the federal commission. This arrangement ensures coordination between federal and state regulators, especially where electricity supply involves the national grid.
The commission further stated that the final end-user tariffs approved by GOSERC will be the only tariffs applicable in Gombe State. It added that any tariff-related subsidies or policy support for electricity consumers in the state will now be the responsibility of the Gombe State Government, rather than the Federal Government.
NERC set a clear timeline for the transition, directing that all transfers and restructuring activities under the order must be completed on or before July 6, 2026. This deadline gives all parties, including JED, GOSERC and the Gombe State Government, sufficient time to put the necessary legal, technical and administrative structures in place.
Industry observers note that the transfer of regulatory oversight to Gombe State is part of a broader shift in Nigeria’s electricity sector, aimed at improving efficiency, encouraging local investment and allowing states to address their unique power challenges. Similar transitions are expected in other states that meet the legal requirements under the amended constitution and Electricity Act.
For electricity consumers and businesses in Gombe State, the change is expected to bring more localised regulation, potentially faster decision-making and policies that reflect the state’s economic realities. However, stakeholders also point out that effective implementation, strong regulatory capacity and transparency will be key to achieving the intended benefits of state-level electricity regulation.
As the deadline approaches, attention will remain on how JED completes the required restructuring and how GOSERC establishes itself as a functional and effective regulator in Nigeria’s evolving power sector landscape.
