— NERC Marks 20th Anniversary
By Obas Esiedesa, Abuja
The Federal Government and investors in the Nigerian Electricity Supply Industry (NESI) have disagreed over whether state governments currently possess the capacity to effectively regulate and manage electricity markets within their jurisdictions.
Speaking at an event in Abuja to mark the 20th anniversary of the Nigerian Electricity Regulatory Commission (NERC), the Minister of Power, Chief Adebayo Adelabu, said devolving regulatory powers to states would boost supply and improve efficiency in the sector.
Represented by the Director of Distribution, Umar Mustapha, the minister said the Electricity Act enables states to harness local resources to meet their energy needs.
“The Act allows states to take charge of their destinies. They can leverage unique resources—solar, hydro, or wind—to build grids that serve their economic and social priorities,” Adelabu said.
He cautioned against hasty amendments to the Act, urging stakeholders to allow full implementation before making changes.
“The Federal Government has provided the policy framework; the states now have the autonomy to act, while the private sector brings in capital and innovation. We must let the model mature before seeking further amendments,” he added.
However, some operators disagreed. The Group Managing Director of Sahara Power Group, Mr. Kola Adesina, argued that most states lack the capacity to effectively manage electricity markets.
“The states don’t have the resources to build electricity infrastructure. When inefficiency is decentralized, it only spreads the problem. There must be alignment between policy and regulation,” Adesina said.
Earlier, NERC’s Vice Chairman, Mr. Musiliu Oseni, reviewed the commission’s progress over the past two decades, noting that 15 states have received transfer orders to establish their own regulators.
“Eleven states have completed the six-month transition period, but only eight are operational. There is a vacuum in Edo, Ogun, and Oyo states,” Oseni said.
He urged new state regulators to maintain professionalism and independence, warning that regulation must be grounded in technical competence rather than politics.
“Regulation is not populism or activism. It requires analytical rigour, independence, and the understanding that there must first be a viable utility before there can be a regulator,” Oseni stated.
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