KEY POINTS
- The Nigerian Electricity Regulatory Commission (NERC) has officially inaugurated the Forum of Nigerian Electricity Regulators (FONER) in Lagos.
- The forum aims to bridge regulatory gaps between federal and State Electricity Regulators (SERs) following the decentralization of the power sector under the Electricity Act 2023.
- NERC Chairman Dr. Musiliu Oseni will lead the forum, supported by Engr. Chijioke Okonkwo of Enugu State (ESERC) as Vice Chairman.
- Primary objectives include harmonizing tariff settings, protecting consumers, and preventing “regulatory arbitrage” by power assets and operators.
MAIN STORY
Nigeria has taken a major step toward stabilizing its decentralized power sector with the formal inauguration of the Forum of Nigerian Electricity Regulators (FONER). Speaking at the first quarter 2026 Regulatory Meeting in Lagos, NERC Chairman Dr. Musiliu Oseni described the forum as a mechanical necessity for Nigeria’s transition to a multi-level electricity market.
The initiative is designed to ensure that as states begin to exercise their constitutional right to regulate their own electricity markets, they do so within a unified national framework that prevents chaos.
The inauguration, performed pursuant to Section 230(9) of the Electricity Act 2023, marks the birth of a consultative platform where federal and state officials can align on market reforms. By signing the FONER Charter, regulators committed to a shared vision of transparency and accountability.
The meeting also served as a review of the 2025 action log, ensuring that the transition from a monolithic federal grid to a diverse, state-led ecosystem does not result in a drop in service standards or investment certainty.
THE ISSUE
The primary challenge addressed by FONER is “Regulatory Arbitrage.” Without a harmonized forum, electricity operators could exploit loopholes between federal and state laws to bypass consumer protection or tariff benchmarks. This “Jurisdictional Friction” has been a major concern for investors looking for policy consistency across Nigeria’s 36 states.
By establishing a peer-learning and capacity-building hub, FONER seeks to eliminate these loopholes, ensuring that whether a consumer is in Enugu or Lagos, the quality of regulation and the fairness of pricing remain globally competitive.
WHAT’S BEING SAID
- “We must work collaboratively to avoid regulatory arbitrage by operators… I charge all of us to carry out this mandate with the highest sense of responsibility,” stated Dr. Musiliu Oseni, NERC Chairman.
- “Pursuant to Section 230(9) of the Electricity Act 2023, I hereby declare the Forum of Nigerian Electricity Regulators duly inaugurated,” Oseni added during the official ceremony.
- “The forum addresses one of our country’s most pressing challenges—power, the backbone of industrialisation,” noted an NSE observer present at the Lagos summit.
WHAT’S NEXT
- Members will begin operationalizing the FONER Charter to set the first unified national benchmarks for state-level tariff modeling.
- The forum will reconvene in Q2 2026 to track the progress of state regulators who have recently taken over oversight from NERC.
- A series of peer-learning workshops is slated for mid-2026 to train state officials on technical grid management and consumer complaint resolution.
- FONER will act as the primary advisory body for upcoming legislative reviews concerning the transition of Distribution Companies (DisCos) to state oversight.
BOTTOM LINE
The Bottom Line is that Nigeria is building a “United States of Electricity.” By creating FONER, NERC and state regulators are acknowledging that while the power market is now decentralized, the rules must be synchronized to attract the billions in investment needed to light up the country. For the Nigerian consumer, this forum is the ultimate watchdog, ensuring that state-led electricity markets deliver on the promise of reliable power rather than just new layers of bureaucracy.
