Precious Anga
Lagos — The Federal Government has cautioned operators across Nigeria’s electricity value chain against actions capable of undermining the country’s decentralised electricity market, stressing that collaboration among regulators, investors and market participants remains critical to sustaining reforms and attracting investment into the power sector.
Minister of Power, Chief Joseph Tegbe, gave the warning in Abuja during a workshop on Legal, Policy and Regulatory Harmonisation between Federal and State Institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI).
Tegbe said the implementation of the Electricity Act has redefined responsibilities within the power sector, with the Federal Government retaining strategic oversight while state governments assume broader regulatory and operational roles in their respective electricity markets.
He explained that while the Nigerian Electricity Regulatory Commission (NERC) continues to regulate areas under federal jurisdiction, state electricity regulators are gradually emerging to supervise electricity markets within their states.
According to the minister, the evolving structure of Nigeria’s electricity industry demands stronger institutional coordination rather than rivalry, noting that the success of the decentralised market depends on the ability of all stakeholders to work towards common objectives.
“Our success is interconnected. This is why collaboration must become the defining principle of our decentralised electricity market. We must ensure collaboration rather than competition between institutions. We must build alignment instead of regulatory conflict. We must practise mutual respect instead of jurisdictional rivalry,” Tegbe said.
He noted that transmission infrastructure remains a national asset, while generation companies continue to supply electricity into the national grid, distribution companies serve millions of customers, private investors provide capital and development partners support sector reforms through technical assistance.
The minister stressed that consumers must remain the focal point of every policy and regulatory decision, adding that no institution within the electricity industry operates independently of the others.
Tegbe explained that the Electricity Act was designed to create complementary electricity markets operating within a unified national framework rather than fragmented and competing power systems.
He warned that regulatory inconsistencies could discourage investment and create uncertainty for operators seeking opportunities in Nigeria’s electricity sector.
“Our objective must therefore be regulatory coherence. Investors should not encounter conflicting rules. Developers should not navigate contradictory approval processes. Consumers should not become casualties of institutional uncertainty. Market participants should enjoy clarity, predictability and confidence wherever they choose to invest,” he stated.
The minister said harmonised policies, transparent regulation and effective cooperation between federal and state institutions would be essential to unlocking private investment, expanding electricity access and delivering a more efficient and reliable power market across the country.
He added that preserving regulatory certainty and strengthening institutional coordination would reinforce investor confidence while supporting the Federal Government’s broader objective of building a competitive, decentralised and sustainable electricity industry capable of driving economic growth.
