By Seun Ibiyemi
The Federal Competition and Consumer Protection Commission (FCCPC) has warned that Nigeria’s emerging state electricity markets could create uncertainty for investors if they operate under different regulatory standards, urging federal and state regulators to adopt a harmonised consumer protection framework.
Speaking on Thursday at a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector in Abuja, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said fragmented regulation could discourage investment and undermine consumer confidence as the country implements the Electricity Act 2023.
The meeting brought together officials of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), and several state electricity regulatory commissions established under the Electricity Act 2023.
Bello described the legislation as one of the most transformative reforms in Nigeria’s electricity sector, noting that it had fundamentally reshaped the regulatory landscape by allowing states to establish independent electricity markets and regulatory commissions.
He, however, stressed that the success of the reforms would depend on cooperation among regulators rather than institutional rivalry.
“The success of this framework will depend not only on the effectiveness of each regulator, but also on how well we work together. Consumers experience electricity as one system.
When supply is interrupted, or a bill appears incorrect, they are not concerned about which regulator has jurisdiction,” Bello said.
According to him, while NERC regulates the electricity industry, NEMSA oversees technical standards, state commissions regulate intrastate electricity markets, and the FCCPC provides economy-wide consumer protection and competition oversight.
He said these responsibilities are complementary and should be coordinated to ensure consumers receive consistent protection nationwide.
Bello cited the suspension of the proposed replacement of obsolete Unistar prepaid meters in 2024 as a successful example of regulatory collaboration involving the FCCPC, NERC, NEMSA and electricity distribution companies.
He said the intervention ensured that consumers were not made to bear the cost of replacing obsolete meters, did not suffer supply interruptions during the replacement exercise and were not subjected to estimated billing because of implementation delays.
The FCCPC boss urged regulators to prioritise collaboration over competition, stressing that electricity consumers should enjoy the same level of protection regardless of where they live.
Also speaking, NERC’s Assistant Director and Head of Consumer Protection Department, Anthony Essien, said decentralisation of Nigeria’s electricity market had made regulatory cooperation indispensable.
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He warned that investors could face significant compliance challenges if states adopted different regulatory frameworks.
“It would not be easy, especially looking at investors coming in and having different standards across 36 states. But if we come together and foster a unified and well-thought-out effort to bring forward laws, it would further strengthen our mandates across the different states,” Essien said.
Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as timely, saying it would enable state regulators to exchange ideas and address common challenges.
Similarly, Chairman of the Anambra State Electricity Regulatory Commission, Frank Nwoye Okafor, said harmonised regulation would reduce uncertainty for investors operating in multiple states.
“The biggest nightmare for an investor is trying to figure out 36 different rules. But if we have this sort of coordination, then we start singing from the same hymn sheet,” Okafor said.
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 obtaining the necessary constitutional and regulatory approvals.
So far, 16 state electricity regulatory commissions have been established. However, industry stakeholders have cautioned that inconsistent regulations across states could increase compliance costs, discourage investment and weaken consumer protection unless stronger coordination is achieved.
