The Nigerian Electricity Regulatory Commission (NERC) has commenced an engagement aimed at driving a structural alignment with the judiciary to protect the ongoing decentralization of Nigeria’s power sector.
As the country transitions into a multi-tier electricity market under the Electricity Act 2023, the intersection of law, commercial regulation, and judicial interpretation has become highly critical.
As part of efforts to realise this goal, NERC convened a regional seminar for judges of the Lagos State High Court on Monday, July 6, in Lagos, with a focus on deepening judicial understanding of the evolving Nigerian Electricity Supply Industry (NESI).
Delivering the opening remarks, NERC Chairman Dr. Musiliu Oseni highlighted the commission’s recent transfer of market oversight responsibilities to 16 states, marking a significant shift toward multi-tiered regulation.
“The objective is to ensure that My Lords are familiar with the intricacies and technical nature of the power sector. We look forward to engaging with you and sharing deeper insights into an industry that is critical to Nigeria’s economic development,” he stated.
Making reference to past court rulings, Oseni stated that judicial pronouncements could disrupt the entire electricity market.
He stated that a court ruling in 2016 restricted NERC’s tariff-setting powers, inadvertently pushing the federal government’s electricity subsidy exposure to N520 billion by 2019, and roughly ₦2 trillion in today’s value.
To prevent such economic shocks, NERC and the National Judicial Institute (NJI) have established deep collaborations with state and federal judicial officers.
The NERC Chairman highlighted the critical role of the courts in sustaining reforms and ensuring stability in Nigeria’s electricity market.
Oseni, who hailed the decentralisation of energy regulation as positive for increasing regulatory access, customer complaint resolution and tariff management, cautioned that the move will unavoidably bring new legal and regulatory issues.
Lagos State Attorney-General and Commissioner for Justice, Lawal Pedro (SAN), commended NERC for organising the seminar.
Pedro, who was represented by the Solicitor-General of Lagos State, Hameed Oyenuga, noted that the seminar offers judges a unique opportunity to engage directly with industry stakeholders, helping to ensure that court rulings reinforce, rather than hinder, the ongoing reform efforts in the power sector.
Echoing that sentiment, Justice Atinuke Ipaye, Administrative Judge of the Lagos Judicial Division, represented by the state Chief Judge, Justice Kazeem Alogba, urged participants to make the most of the sessions.
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She encouraged active participation and a thorough exploration of the evolving regulatory environment.
The programme featured two main technical presentations:
Transitioning into a Decentralised Electricity Sector: Legal and Regulatory Perspectives, led by NERC Commissioner for Legal, Licensing and Compliance, Dafe C. Akpeneye.
Tariff Regulation in a Decentralised Electricity Market, delivered by NERC Vice Chairman, Dr. Yusuf Ali.
Held under the theme “Nigeria’s Electricity Market in Transition: Law, Regulation and the Courts,” this event marks the first in a planned series of regional engagements by NERC.
The broader objective is to build judicial capacity and foster a uniform understanding of the legal frameworks guiding Nigeria’s evolving electricity market.
