NERC Backs Minister's Call for Collaboration in Electricity Sector

The Nigerian Electricity Regulatory Commission has expressed its support for the Minister of Power, Joseph Tegbe's, call for increased cooperation among stakeholders in the Nigerian Electricity Supply Industry. This comes after a recent workshop in Abuja, which aimed to harmonize the legal, policy, and regulatory frameworks between federal and state institutions following the decentralization of the electricity market under the Electricity Act of 2023. The Act has given states the power to establish and regulate their own electricity markets, thereby altering the governance structure of the power sector and making coordination between federal and state institutions crucial to avoid regulatory conflicts and ensure investor confidence. In a statement, NERC stated that the workshop provided a platform for stakeholders to discuss the challenges arising from the transition to a multi-tier electricity market and identify ways to collaborate seamlessly. The Chairman of the Commission, Dr. Musiliu Oseni, emphasized that the focus of all stakeholders should be on improving electricity supply rather than competing over regulatory responsibilities. 'Nigerians are not concerned about who regulates what or who is responsible for policymaking, but they care deeply about the availability and reliability of electricity supply. It does not matter to them who drives the sector, whether it is the state or federal government, but who meets their supply needs,' Oseni said. He urged regulators and policymakers to set aside their institutional interests and engage in dialogue to deliver better outcomes for electricity consumers. 'I urge all stakeholders to reflect on their actions, drop their ego and personal interests, and engage in dialogue to work together to meet the needs of Nigerians,' he added. Oseni also proposed the creation of a more structured platform for regular engagement between the federal government and state authorities, suggesting that the existing National Council on Power be reformed to allow for more frequent and focused policy meetings. According to him, regular engagements between the Minister of Power and state commissioners responsible for electricity would strengthen policy coordination and facilitate smoother implementation of the ongoing reforms. 'These will ensure frequent touchpoints between the federal and state governments on policy implementation and coordination, especially during this transition phase,' he said. Earlier, the Minister of Power, Joseph Tegbe, had warned stakeholders against actions that could undermine the decentralized electricity market, emphasizing that the reforms aim to create complementary electricity markets operating within a single national framework rather than competing power systems. He stressed that collaboration among the federal government, state governments, regulators, investors, and market operators would determine the success of the reforms, announcing the establishment of a nine-member inter-agency committee to address implementation challenges and deepen regulatory harmonization. The committee, which he will chair, has been given four weeks to engage stakeholders and recommend measures to strengthen the implementation of the Electricity Act of 2023. He maintained that regulatory coherence, investor confidence, and institutional alignment would remain essential to building a stable, efficient, and investment-friendly electricity market capable of supporting Nigeria's economic growth and expanding access to reliable power.