…As NERC transferred regulatory powers of Bayelsa Electricity Market to State
By Dickson Pat
Federal Government has revealed that some rural communities in Nigeria are paying higher electricity tariffs than urban Band A consumers, despite enjoying a more stable power supply.
The Managing Director of the Rural Electrification Agency, REA, Abba Aliyu made this known Monday while speaking on Channels Television’s “The Morning Brief programme” monitored by AljazirahNigeria in Abuja.
“There are communities, there are rural areas that pay more tariffs than Band A customers. There are areas where the tariff is close to N250 and N280″, Aliyu said.
The REA boss said the electricity tariff paid by rural communities largely depended on the total cost of infrastructure deployed by his agency.
“They pay for their electricity, and they enjoy it, but there are other areas where the tariff is less than Band A. It’s subjective on the total cost of infrastructure we deploy within those communities”, he said, adding that his agency explores solar energy as an economically viable model for power generation to rural communities.
He said the agency has completed scores of mini-grids and interconnected mini-grids for universities and general hospitals across the six geo-political zones of the country.
Nigeria has faced intractable energy challenges, no thanks to an epileptic power supply, which significantly affects productivity levels.
Despite the privatisation of the electricity sector, power generation, transmission and distribution have remained bogged with hydra-headed monsters of policy inconsistency, low investments and operational challenges.
In 2024, the Nigerian Electricity Regulatory Commission ,NERC, approved the upward review of electricity prices.
The increase saw electricity customers pay N225 kilowatt per hour from N66, a development that was heavily criticised by many Nigerians, considering the immediacy of the tariff hike and the current hardship in the land.
The cost of petrol and diesel, which are readily available alternatives, has increased by fivefold, compounding the dilemma of consumers.
In April, energy analyst and media executive, Ikechukwu Amaechi, raised concerns over the integrity of Nigeria’s electricity banding system, describing the much-publicised “Band A” classification as a scam that does not deliver on its promises.
His comments come amid growing discontent among Nigerian consumers, particularly those in the Band A category, over what many describe as unjustified electricity tariff hikes without a corresponding improvement in supply.
Under the current tariff structure approved by the NERC, Band A customers are expected to receive a minimum of 20 hours of power supply per day.
Meanwhile, the Nigerian Electricity Regulatory Commission ,NERC, has officially transferred regulatory oversight of the electricity market in Bayelsa State from the Commission to the Bayelsa State Electricity Regulatory Agency ,BYERA.
The announcement was made via NERC’s official X (formerly Twitter) handle yesterday.
This development is in line with the amended Constitution of the Federal Republic of Nigeria and the provisions of the Electricity Act (EA) 2023, which empowers states to regulate electricity generation, transmission, and distribution within their boundaries.
The NERC’s statement read in part, “In compliance with the amended Constitution of the Federal Republic of Nigeria ,CFRN, and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission ,“NERC” or the “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 ,BYERA”.
According to NERC, the Port Harcourt Electricity Distribution Company Plc ,PHED, has been directed to incorporate a new subsidiary, PHED SubCo to assume responsibilities for intrastate supply and distribution of electricity in Bayelsa State from PHED.
“PHED shall complete the incorporation of PHED SubCo within 60 days from August 21, 2025″, NERC said.
Upon completion, PHED SubCo must obtain a licence from BYERA, among other directives.
NERC stated that all regulatory and operational handovers should be concluded by February 20, 2026.
The Commission emphasized that while states now have the right to regulate intrastate electricity markets, it will retain its role as the central regulator overseeing interstate and international electricity generation, transmission, trading, and system operations.
The transfer in Bayelsa is the latest in a series of state-level regulatory handovers initiated by NERC under the EA 2023, which was created to give states more control over managing electricity supply in their areas.
In 2025 alone, NERC has transferred electricity market regulation to several states, including Abia from the Commission to the Abia State Electricity Regulatory Authority ,ASERA, and Plateau State from the Commission to the Plateau State Electricity Regulatory Commission ,PSERC, Niger State to the Niger State Electricity Regulatory Commission ,NSERC.
Also, in August, NERC had officially transferred regulatory oversight of the electricity market in Nasarawa State to the Nasarawa State Electricity Regulatory Commission ,NASERC.
In 2024, the Federal Government, through the Nigerian Electricity Regulatory Commission ,NERC, transferred regulatory oversight of the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission ,LASERC.
NERC also issued similar transfer orders for Ogun, Ekiti, and Ondo states, handing over regulatory authority to the Ogun State Electricity Regulatory Commission ,OGERC, Ekiti State Electricity Regulatory Bureau ,EERB, and Ondo State Electricity Regulatory Bureau ,OSERB, respectively.
