NERC Inaugurates Forum of Nigerian Electricity Regulators to Drive Market-Wide Reforms
The Nigerian Electricity Regulatory Commission (NERC) has officially inaugurated the Forum of Nigerian Electricity Regulators (FoNER), marking a significant step towards addressing fundamental challenges in the country's electricity market. This initiative aims to foster deeper coordination between federal and state regulators, shifting focus from isolated sector issues to comprehensive market reforms.
Strengthening Regulatory Coordination
Musiliu O. Oseni, Chairman of NERC, inaugurated FoNER on March 25, 2026, emphasizing its role as a central platform for aligning regulatory frameworks and enhancing consumer protection. Oseni highlighted that electricity is crucial for economic growth, yet the industry faces persistent challenges such as liquidity constraints, infrastructure deficits, and regulatory fragmentation. He stated, "We gather today not merely to witness the formal inauguration of a body, but to architect the future of our industry." The Forum is designed to ensure structured collaboration between NERC and State Electricity Regulatory Commissions (SERCs), particularly following the decentralizing reforms introduced under the Electricity Act 2023.
Journey to Establishment
The establishment of FoNER followed months of consultations and technical engagements. A Technical Working Group (TWG) was constituted on September 26, 2025, with representatives from NERC and SERCs, tasked with designing an institutional framework for coordination and regulatory alignment. The TWG held its inaugural meeting on November 11, 2025, and developed a draft charter, which was presented at a regulatory meeting on December 1, 2025. After incorporating feedback from state regulators, a validation workshop on February 24, 2026, led to the finalization of the charter on March 2, 2026. Oseni commended the contributions of the TWG and stakeholders, noting that the signing of the charter transitions FoNER from concept to institution.
Objectives and Market Focus
FoNER's objectives include facilitating dialogue on regulatory issues, promoting harmonized approaches to tariff setting and market operations, supporting capacity building, and advancing transparency and accountability. Oseni outlined that the Forum will serve as a consultative platform for electricity market reforms and help establish national regulatory benchmarks. He warned against narrow interpretations of the sector's problems, stressing that the core issue is market sustainability rather than isolated constraints in generation, transmission, or distribution. "The key issue is: we have an electricity market problem!" he asserted, urging regulators to work collaboratively to prevent regulatory arbitrage and ensure reforms deliver economic value.
Formal Inauguration and Future Outlook
Citing Section 230(9) of the Electricity Act 2023, Oseni formally declared FoNER inaugurated, stating, "Pursuant to Section 230(9) of the EA 2023, I hereby declare the Forum of Nigerian Electricity Regulators duly inaugurated." This move is expected to enhance regulatory synergy and drive sustainable market operations, positioning the electricity sector for improved stability and investment. The initiative underscores NERC's commitment to shaping the industry's trajectory through innovation and public interest protection, with a focus on long-term prosperity and coordinated regulatory actions.
