The Nigerian Electricity Regulatory Commission (NERC) urges electricity distribution companies (DisCos) to establish a framework for identifying and managing assets and liabilities to improve regulatory effectiveness.
This directive is shared through a post on NERC’s official social media platform. NERC Chairman, Sanusi Garba, emphasizes the importance of a clear and structured approach to asset and liability delineation, particularly as the sector undergoes reforms aimed at decentralizing electricity regulation in Nigeria.
Garba stresses that a transparent framework is crucial for guiding the regulatory process, ensuring that both assets and liabilities are clearly defined. The discussions at a recent workshop offer valuable insights into best practices and potential challenges in implementing these frameworks.
The event underscores the need for collaboration among NERC, state regulatory bodies, and DisCos to develop a unified approach. This cooperation is essential for the fair allocation of assets and liabilities, which will, in turn, improve the efficiency of Nigeria’s electricity market.
The workshop includes two important panel discussions that focus on actionable strategies for asset and liability delineation:
- Delineating Assets: The first panel addresses how to define ownership structures, valuation methods, and operational boundaries for DisCos’ assets. The aim is to ensure transparency and accountability in asset allocation within the sector.
- Delineating Liabilities: The second panel discusses how to identify and manage the liabilities of DisCos, including outstanding debts, financial obligations, and regulatory compliance.
NERC reaffirms its commitment to creating a fair, transparent, and efficient regulatory environment. The insights gathered from these discussions will help shape future policies and strategies aimed at improving Nigeria’s electricity sector.
NERC also reports that Nigeria has registered 13,339,635 electricity customers across 12 DisCos, with a significant portion, about 53.85%, still unmetered.
Additionally, NERC has instructed electricity distribution companies (DisCos) to ensure that Band A customers receive the required 20 hours of daily power supply, as part of ongoing efforts to enhance service quality.
