The Federal Government of Nigeria (FGN) and the National Assembly (NASS) have reiterated their commitment to supporting the complementary roles of electricity regulators as the country moves towards an effective transition to a multi-tier Nigerian Electricity Market. Top government officials and lawmakers made their positions known 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)’.
Electricity as Foundation for Industrialisation
In his remarks, the Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, Rilwan Lanre Babalola, described electricity as the foundation for industrialisation, economic competitiveness, job creation and national prosperity. He tasked participants to embrace the transition as partners working towards one Nigerian electricity market, rather than institutions protecting separate 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,” stated Mr Babalola.
“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 an efficient Nigerian electricity market,” he added.
Senate Committee Pledges Enabling Legislation
Chairman of the Senate Committee on Power, Enyinnaya Abaribe, reaffirmed the committee’s commitment to an enabling law that permits Federal and State electricity regulators to perform complementary roles. “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. We therefore require harmonised rules governing the relationship between NERC and State Electricity Regulatory Commissions,” he said.
Minister and NERC Chairman Emphasise Harmonisation
The Minister of Power, Joseph Tegbe, and the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, harped on the need for harmonisation of regulatory and operational activities in the sector. Their remarks underscored the importance of coordinated efforts to avoid fragmentation and ensure a seamless transition to a multi-tier market structure.
