Nigeria’s Minister of Power, Chief Joseph Tegbe, has called on regulators and stakeholders in the Nigerian Electricity Supply Industry (NESI) to avoid regulatory actions that could undermine the country’s evolving decentralised electricity market, warning that policy conflicts could discourage investment and create uncertainty for consumers.
Speaking at the Workshop on Legal, Policy and Regulatory Harmonisation between Federal and State Institutions on the Decentralisation of the Nigerian Electricity Supply Industry, held in Abuja, Tegbe stressed the need for coordinated regulation following the implementation of the Electricity Act, which empowers states to establish and regulate their own electricity markets.
Call for Regulatory Harmonisation
The minister said Nigeria’s electricity reform requires strong collaboration among federal and state institutions to ensure a stable, transparent and investor-friendly power sector.
According to Tegbe, while state governments have assumed expanded responsibilities under the decentralised electricity framework, the Federal Government continues to provide national leadership, with the Nigerian Electricity Regulatory Commission (NERC) retaining oversight of areas within its statutory jurisdiction as state electricity regulators emerge across the country.
“The success of our decentralised electricity market depends on collaboration rather than competition between institutions,” Tegbe said.
“We must build alignment instead of regulatory conflict and practice mutual respect instead of jurisdictional rivalry.”
Electricity Act Creates Complementary Markets
The minister emphasised that the Electricity Act was designed to create complementary electricity markets operating within a unified national framework—not competing regulatory systems.
He warned that inconsistent regulations or overlapping approval processes could weaken investor confidence and slow the development of Nigeria’s power sector.
“Our objective must therefore be regulatory coherence,” Tegbe said.
“Investors should not encounter conflicting rules. Developers should not navigate contradictory approval processes. Consumers should not become casualties of institutional uncertainty.”
Clear Roles Across the Electricity Value Chain
Tegbe outlined the responsibilities of key institutions under the decentralised market structure:
- The Federal Government provides overall policy direction and national leadership.
- State governments oversee electricity markets within their jurisdictions.
- NERC continues regulating activities under federal jurisdiction.
- State electricity regulators supervise newly established state electricity markets.
- Transmission remains a national strategic asset.
- Generation companies (GenCos) continue supplying electricity to the national grid.
- Distribution companies (DisCos) remain responsible for delivering electricity to millions of consumers.
- Private investors provide capital for sector expansion, while development partners contribute technical expertise.
He stressed that electricity consumers must remain at the centre of all policy and regulatory decisions.
Investment Confidence Key to Sector Growth
The minister said regulatory certainty, policy consistency and institutional cooperation are essential to attracting long-term private investment needed to address Nigeria’s electricity supply challenges.
He noted that developers and investors require clear, predictable and transparent regulatory frameworks regardless of whether they operate in federal or state electricity markets.
The workshop brought together federal and state regulators, policymakers and industry stakeholders to strengthen legal and regulatory coordination as Nigeria continues implementing the decentralised electricity market established under the Electricity Act.
