Kogi Takes Over Electricity Market

By Ricky Awodi

The Kogi State Electricity Regulatory Commission (KERC) has officially taken over the regulatory responsibilities of the intra-state electricity market, effective March 12, 2025. This move, according to the commission, is aimed at optimizing operations for the benefit of the state’s residents.

Speaking at a stakeholders’ engagement town hall meeting in Lokoja on Monday, the chairman of KERC, Engineer Ibrahim S. Abdwaaris, stated that the commission is committed to improving service quality, ensuring accountability, and enforcing transparency in electricity distribution and tariff regulation.

A Transparent and Investor-Friendly Framework

Engineer Abdwaaris emphasized that KERC’s mandate includes creating a stable regulatory environment that will boost investor confidence while protecting consumer rights.

Kogi Takes Over Electricity Market
Kogi Takes Over Electricity Market

“We will balance the business interests of all stakeholders in the electricity value chain,” he said. “Our commitment is to ensure fair, transparent, and cost-reflective tariff structures, while also guaranteeing public engagement and response to all issues before the commission.”

He noted that KERC will maintain ongoing engagement with stakeholders, businesses, communities, and consumer groups to facilitate a seamless transition and effective coordination of responsibilities in the state’s electricity market.

The chairman also explained that the transition followed an order from the Nigerian Electricity Regulatory Commission (NERC) in September 2024, approving the state’s request to assume regulatory control over its electricity market, which was initially submitted in August 2024.

Foundation for Effective Operations

Kogi State’s electricity sector reform is anchored on the Electricity Act signed by the Federal Government in June 2023, which grants states the authority to develop their electricity markets. Subsequently, the Kogi State Electricity Bill was passed by the State House of Assembly in June 2024.

Engineer Abdwaaris revealed that Kogi is among seven states—out of ten applicants—that have secured NERC’s approval to regulate electricity in their territories. He assured stakeholders that adequate structures have been put in place for a smooth and effective transition.

“We will open communication channels for feedback, concerns, and suggestions to enhance operational efficiency and prompt response to issues,” he added.

Government’s Vision for Affordable and Reliable Power

The State Commissioner for Information and Communication, Kingsley Fanwo, described the initiative as a strategic move to ensure the availability of reliable, affordable, and accessible electricity. He noted that improved power supply would drive economic growth, particularly in the tourism, hospitality, and investment sectors.

Stakeholders Demand Consumer Protection

Despite the optimism surrounding the transition, stakeholders raised concerns about key challenges that could hinder the success of the initiative. Issues such as estimated billing, lack of metering, frequent power outages, and the state’s capacity to manage electricity distribution were at the forefront of discussions.

Prominent activist Idris Miliki cautioned that consumer interests must be prioritized for the new arrangement to succeed.

“Any attempt to market electricity without addressing consumer concerns will be counterproductive. The issues of metering, estimated and exorbitant billing, frequent outages, and inherited legal disputes with former service providers must be properly tackled,” he warned.

The town hall meeting was attended by a diverse group of stakeholders, including traditional rulers, community leaders, and representatives from various sectors, reflecting the significance of the electricity reform to Kogi State’s socio-economic development.

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With KERC now in charge, the success of Kogi’s electricity market will depend on its ability to navigate these challenges while ensuring a stable and transparent energy supply that benefits both investors and consumers alike.

 

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