Joseph Bakare
Nigeria’s power sector is facing serious regulatory hurdles with State Governments finding it difficult to align with new measures.
To achieve mutually beneficial outcomes, the Chairman of the Nigerian Electricity Regulatory Commission (NERC) Dr. Musiliu Oseni, has called on federal and states in the power sector to end regulatory differences and improve collaboration.
He warned that institutional rivalries could derail the gains of Nigeria’s ongoing electricity reforms.
Speaking at a workshop on the legal, policy and regulatory harmonisation between federal and state institutions on the decentralisation of the Nigerian Electricity Supply Industry (NESI), Oseni said the success of the Electricity Act 2023 would depend on effective coordination rather than competition among regulators.
He said Nigerians were less concerned about which tier of government regulates the electricity sector than about having access to reliable electricity.
“Nigerians do not really care about who regulates what or who is responsible for policy making, but they strongly care about the availability and reliability of supply. It does not matter to them who drives the sector, be it state or federal, but who actually meets their supply needs,” he said.
Calling for greater cooperation among stakeholders, Oseni said public disagreements between regulators and policymakers only weaken confidence in the sector.
“It is on this basis I wish to urge all actors in the room to reflect, drop our ego and personal interests, embrace dialogue and let us all work together to meet the yearnings of Nigerians. The media space shouldn’t be a platform to vent our disagreements. We must create a strategic platform where regulatory and policy dialogues on the issues relating to the power sector take place,” he added.
Oseni noted that the Electricity Act 2023 and the constitutional amendment had fundamentally changed Nigeria’s electricity governance structure by empowering states to establish and regulate their own electricity markets.
He disclosed that regulatory oversight had so far been transferred to 16 states, which are now at various stages of implementing their electricity markets.
He warned that the absence of policy coordination and regulatory harmonisation could undermine the expected benefits.
“When we lack these two things (coordination and harmonisation), we cause confusion, lose public confidence, and worse still, we fail to provide reliable power to Nigerians,” he said.
Oseni proposed that the National Council on Power be restructured to facilitate more regular engagement between the Federal Government and state commissioners responsible for power, particularly during the transition to the decentralised electricity market.
He also dismissed concerns that the Forum of Nigerian Electricity Regulators (FONER) gives NERC undue influence over state regulators.