Key points
- FCCPC warned that fragmented electricity regulations across states could create uncertainty for investors.
- The commission called for a harmonised consumer protection framework nationwide.
- FCCPC urged closer collaboration among NERC, NEMSA and state electricity regulatory commissions.
- NERC said differing regulatory standards across states could discourage investment.
- State regulators backed greater coordination to reduce compliance burdens for investors.
- Sixteen state electricity regulatory commissions have been established under the Electricity Act 2023.
Main Story
The Federal Competition and Consumer Protection Commission (FCCPC) has warned that Nigeria’s emerging state electricity markets could become less attractive to investors if they operate under divergent regulatory standards, urging federal and state regulators to adopt a harmonised approach to consumer protection.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, made the call during a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector held at the commission’s headquarters in Abuja.
The meeting brought together officials of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA) and state electricity regulatory commissions following the decentralisation of Nigeria’s electricity market under the Electricity Act 2023.
Bello described the legislation as one of the most significant reforms in Nigeria’s electricity sector, noting that it had created opportunities for states to establish independent electricity markets. However, he stressed that the success of the reforms would depend on effective collaboration among regulators rather than institutional rivalry.
He explained that while NERC regulates the electricity sector, NEMSA is responsible for enforcing technical standards, state regulators oversee intrastate electricity markets, and the FCCPC provides economy-wide consumer protection and competition oversight.
According to Bello, consumers experience the electricity sector as a single system regardless of regulatory jurisdiction, making coordinated regulation essential to ensuring consistent consumer protection and service delivery across the country.
He cited the suspension of the proposed replacement of obsolete Unistar prepaid meters in 2024 as an example of successful regulatory collaboration, noting that the joint intervention by the FCCPC, NERC, NEMSA and electricity distribution companies ensured consumers were not compelled to bear replacement costs, experience supply disruptions or face estimated billing.
Speaking at the event, the Assistant Director and Head of Consumer Protection Department at NERC, Anthony Essien, said decentralisation had made collaboration among regulators indispensable, warning that investors could face significant compliance challenges if different states adopted conflicting regulatory standards.
Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as timely, saying it would help state regulators exchange ideas and collectively address emerging issues within the evolving electricity market.
Similarly, Chairman of the Anambra State Electricity Regulatory Commission, Prof. Frank Nwoye Okafor, said greater regulatory coordination would reduce uncertainty for investors operating across multiple states and create a more predictable investment environment.
The Electricity Act 2023 ended decades of exclusive federal control over Nigeria’s electricity sector by empowering states to establish and regulate their own electricity markets after meeting constitutional and regulatory requirements. The reforms have so far led to the establishment of 16 state electricity regulatory commissions.
The Issues
Different regulatory standards across states could increase compliance costs and discourage investment.
Fragmented consumer protection frameworks may create unequal treatment for electricity consumers nationwide.
Effective implementation of the Electricity Act 2023 depends on strong cooperation among federal and state regulators.
Investors require regulatory certainty and consistency to support long-term investments in the power sector.
Coordinated regulation is essential to balancing market liberalisation with consumer protection.
What’s Being Said
FCCPC Executive Vice Chairman, Tunji Bello, said consumers should enjoy the same level of protection regardless of where they reside, stressing that regulatory agencies must work together to ensure a seamless electricity market.
NERC’s Anthony Essien warned that varying regulatory standards across Nigeria’s states could complicate investment decisions and called for a unified regulatory approach.
Anambra State Electricity Regulatory Commission Chairman, Prof. Frank Nwoye Okafor, said coordinated regulation would eliminate uncertainty for investors operating across multiple states, while his Enugu counterpart, Chijioke Okonkwo, described inter-agency collaboration as essential to addressing emerging sector challenges.
What’s Next
Federal and state electricity regulators are expected to deepen collaboration to develop harmonised regulatory standards and consumer protection frameworks as more states establish independent electricity markets under the Electricity Act 2023. Stakeholders will also continue discussions on reducing regulatory overlaps and creating a more predictable investment environment for the power sector.
Bottom Line
As Nigeria transitions to decentralised electricity markets, regulators say policy coordination and harmonised consumer protection standards will be critical to attracting investment, ensuring regulatory certainty and delivering reliable electricity services nationwide.
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