FG, NASS support complementary roles for regulators in multi-tier electricity market

The Nigerian Federal Government and the National Assembly are reinforcing their commitment to a harmonized approach for electricity regulators as the nation transitions to a multi-tier electricity market. This commitment was highlighted at a workshop in Abuja focused on legal, policy, and regulatory harmonization between federal and state institutions concerning the decentralization of the Nigerian Electricity Supply Industry (NESI).

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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.

Rilwan Lanre Babalola, Special Adviser to the President on Power, emphasized that electricity is fundamental to Nigeria's industrialization and prosperity. He urged participants to view the transition as a collaborative effort, stating, "Every major reform creates new opportunities. It also creates new interfaces." Babalola acknowledged that decentralization naturally raises questions about regulatory boundaries and market oversight, but stressed that these must be resolved through dialogue and mutual respect. "Our networks remain interconnected. Our markets remain interdependent. Our prosperity remains shared. That is why harmonisation is not optional. It is fundamental to preserving an efficient Nigerian electricity market," he asserted.

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Our networks remain interconnected. Our markets remain interdependent. Our prosperity remains shared. That is why harmonisation is not optional. It is fundamental to preserving an efficient Nigerian electricity market.

Chairman of the Senate Committee on Power, Enyinnaya Abaribe, affirmed the committee's dedication to enacting laws that enable federal and state electricity regulators to perform complementary functions. He stated that the success of decentralization should be measured by the creation of a coherent, efficient, and integrated electricity market, rather than just the number of states establishing their own markets. "We therefore require harmonised rules governing the relationship between NERC and State Electricity Regulatory Commissions," Abaribe added.

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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 in which federal and State institutions perform complementary rather than competing roles.

Minister of Power Joseph Tegbe and NERC Chairman Musiliu Oseni also underscored the critical need for harmonizing regulatory and operational activities within the power sector to ensure the effective functioning of the decentralized market.

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We therefore require harmonised rules governing the relationship between NERC and State Electricity Regulatory Commissions.