Joseph Bakare
The seeming fragile cooperation between Federal and State Governments electricity regulators is now being addressed as the Federal Government and the National Assembly reaffirms their commitment to promote stronger cooperation between both regulatory Agencies .
The cooperation is seen as a better option as Nigeria transitions to a decentralised electricity market.
The Nigerian Electricity Regulatory Commission (NERC) has also introduced new guidelines for periodic technical audits of the national transmission network.
The commitments were made 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),” where participants stressed that effective coordination among regulators would be critical to sustaining a unified electricity market.
Speaking at the event, the Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, Mr. Rilwan Lanre Babalola, described electricity as the foundation for industrialisation, economic competitiveness, job creation and national prosperity.
He urged stakeholders to approach the ongoing reforms as partners working towards a single Nigerian electricity market rather than institutions competing over regulatory jurisdictions.
“Every major reform creates new opportunities. It also creates new interfaces. 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.
“Our responsibility is to ensure that these questions are resolved through dialogue, cooperation and mutual respect. 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,” he stressed.
Also speaking, Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, said the legislature would continue to support legal frameworks that enable federal and state regulators to perform complementary functions.
“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.
“We therefore require harmonised rules governing the relationship between NERC and State Electricity Regulatory Commissions,” he stressed.
The Minister of Power, Chief Joseph Tegbe, and Chairman of NERC, Dr. Musiliu Oseni, also stressed the need for harmonisation of regulatory and operational activities across the Nigerian Electricity Market.
The NERC has equally announced the issuance of the Guidelines on the Procedures for Technical Audit of the Transmission System and Network Data Validation 2026, which took effect on July 20, 2026.
According to the commission, the guidelines establish a transparent, uniform and standardised framework for conducting periodic technical audits of Nigeria’s transmission system and validating network data to improve the reliability, safety, security and operational efficiency of the national grid.
Under the new framework, the Nigerian Independent System Operator (NISO) is required to engage qualified consultants to conduct comprehensive technical audits of the 330kV and 132kV transmission networks at least once every five years, or as otherwise directed by the commission.
Transmission Service Providers (TSPs) are also mandated to grant auditors full access to transmission facilities, operational records and other relevant information, while preparing and implementing performance improvement plans based on audit findings and submitting annual progress reports to NERC.
The guidelines also prescribe the minimum competency requirements, scope of work and methodology for consultants undertaking the technical audits.
NERC urged stakeholders in the Nigerian Electricity Supply Industry to familiarise themselves with the provisions of the guidelines and ensure full compliance to support a more reliable and efficient electricity transmission system.