A Public Policy and Government Relations professional, Emmanuel Effiong, has warned that Nigeria’s metering deficit could pose a major challenge to the successful implementation of the country’s newly introduced Prosumer Electricity Regulations, despite its potential to transform the power sector.
Effiong noted that while the regulatory framework marks a significant step toward expanding renewable energy adoption and encouraging citizen participation in electricity generation, effective implementation will be critical to achieving its intended outcomes. He said policy design alone is insufficient, stressing that three key execution risks could hinder the framework’s success.
According to him, metering remains one of the most pressing challenges. He explained that the requirement for NEMSA-certified bidirectional meters at every prosumer connection point comes against the backdrop of a significant national metering deficit.
“Fewer than eight million of Nigeria’s approximately 15 million registered electricity customers had been metered by 2025. Scaling up revenue-grade bidirectional metering across distribution company networks represents a major capital and logistical challenge not fully addressed in the regulations,” he said.
Effiong warned that without a clearly defined metering rollout plan, the framework could remain technically sound but practically inaccessible to many consumers wishing to participate in the prosumer market.
Tariff Structure Concerns
He also raised concerns over the yet-to-be-determined tariff structure for energy exported to the national grid. Under the regulations, the Nigerian Electricity Regulatory Commission (NERC) is empowered to determine export credits through a net metering tariff mechanism. The framework provides for a fixed tariff component linked to average grid-connected hydropower generation tariffs, alongside a variable component reflecting interconnection costs.
According to Effiong, the final tariff level will play a decisive role in shaping investor confidence and determining whether consumers are willing to invest in prosumer-scale energy systems.
“The precise tariff level will determine whether exporting to the grid generates meaningful economic returns or merely offsets a fraction of consumption costs. Market participants will require regulatory certainty before committing capital,” he stated.
He urged the NERC to prioritise early publication of the tariff methodology to improve clarity and boost investor confidence.
Coordination Challenges
Effiong further highlighted potential coordination challenges between the NERC and State Electricity Regulatory Commissions (SERCs), especially as subnational electricity markets continue to evolve following recent reforms. He noted that while the regulations include timelines for application processing and dispute resolution, effective implementation will depend on enforcement and regulatory alignment across jurisdictions.
“In states where subnational electricity markets are emerging, the interaction between NERC’s federal framework and state regulators creates an additional coordination layer,” he said.
Effiong added that distribution companies operating in state-regulated markets would require clarity on oversight and dispute resolution mechanisms, while SERCs must harmonise their frameworks with federal regulations to ensure seamless implementation.
He concluded that addressing these challenges promptly would be essential to unlocking the full potential of Nigeria’s prosumer electricity ecosystem and advancing the country’s energy transition goals.
