The Federal Government and the National Assembly have reaffirmed their commitment to supporting complementary roles for electricity regulators as Nigeria transitions to a multi-tier electricity market.
At a workshop in Abuja on “Legal, Policy and Regulatory Harmonisation between Federal and State Institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI),” top officials stressed that regulatory harmony is essential for a coherent and efficient national electricity market.
Mr. Rilwan Lanre Babalola, Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, described electricity as the foundation for industrialisation, economic competitiveness, job creation, and national prosperity.
He urged participants to embrace the transition as partners working towards one Nigerian electricity market rather than institutions protecting separate jurisdictions.
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“Every major reform creates new opportunities. It also creates new interfaces,” Babalola stated.
“As Federal and State institutions assume their respective responsibilities, questions will naturally arise regarding regulatory boundaries, market oversight, technical standards and commercial arrangements. That is not a weakness of the reform. It is the natural consequence of institutional evolution,” he added.
He emphasised that while the Electricity Act decentralises aspects of governance, it does not decentralise the physics of electricity. “Our networks remain interconnected. Our markets remain interdependent. Our prosperity remains shared. That is why harmonisation is not optional. It is fundamental to preserving one efficient Nigerian electricity market.”
Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, reaffirmed the Committee’s commitment to an enabling legal framework that permits federal and state regulators to perform complementary roles.
“Ultimately, the success of decentralisation should not be measured merely by the number of States that established electricity markets or obtained transfer orders. Rather, success should be measured by whether Nigeria achieves a coherent, efficient, bankable and integrated electricity market where federal and State institutions perform complementary rather than competing roles,” Abaribe said.
“We therefore require harmonised rules governing the relationship between NERC and State Electricity Regulatory Commissions.”
The Minister of Power, Chief Joseph Tegbe, and NERC Chairman Dr. Musiliu Oseni also stressed the need for harmonisation of regulatory and operational activities in the Nigerian Electricity Market . Oseni noted that Nigerians are less concerned about which institution regulates the sector and more interested in having reliable and uninterrupted electricity supply .
