The Federal Government and the National Assembly have reaffirmed their commitment to supporting complementary roles for federal and state electricity regulators as Nigeria advances the implementation of a multi-tier electricity market.
The commitment was made 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)," where stakeholders stressed that regulatory coordination is key to preserving an efficient and integrated electricity market.
The Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, Mr. Rilwan Lanre Babalola, described electricity as the backbone of industrialisation, economic competitiveness, job creation and national prosperity.
He urged federal and state institutions to see themselves as partners working towards one Nigerian electricity market rather than competing 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," Babalola said.
He maintained that while the Electricity Act decentralises aspects of governance, it does not change the interconnected nature of Nigeria's electricity system.
"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," he added.
Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, also pledged the National Assembly's support for legislation that enables federal and state electricity regulators to discharge their responsibilities in a complementary manner.
He said the real measure of decentralisation would be the emergence of a coherent, efficient and bankable electricity market rather than the number of states that establish electricity markets.
"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," Abaribe stated.
Also speaking at the workshop, the Minister of Power, Chief Joseph Tegbe, and the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Musiliu Oseni, underscored the need to harmonise regulatory and operational activities across the Nigerian Electricity Market (NEM) to support the country's ongoing electricity sector reforms.
The workshop brought together key stakeholders to examine legal, policy and regulatory frameworks required to ensure effective coordination between federal and state institutions following the decentralisation of the Nigerian Electricity Supply Industry.