FG, NASS Back Shared Regulator Roles For Multi-tier Power Market

The federal government and the National Assembly have reaffirmed their support for shared, complementary roles for federal and state electricity regulators as Nigeria transitions to a multi‑tier power market.

This was one of the high points 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)’.
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.
He said, “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,” Babalola stated.
Also speaking, chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, reaffirmed the Committee’s commitment to an enabling law that permits federal and state electricity regulators to perform complementary roles.
His words: “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.”
Also at the workshop, the minister of Power, Chief Joseph Tegbe, and the chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Musiliu Oseni, harped on the need for harmonisation of regulatory and operational activities in the Nigerian Electricity Market (NEM).