FG, investors clash over states’ capacity to regulate electricity market

….as NERC Marks 20th Anniversary

By Obas Esiedesa, Abuja

The Federal Government and investors successful the Nigerian Electricity Supply Industry (NESI) person expressed differing views connected whether authorities governments presently person the capableness to modulate energy markets wrong their jurisdictions.

The disagreement surfaced astatine an lawsuit successful Abuja marking the 20th day of the Nigerian Electricity Regulatory Commission (NERC).

Speaking connected behalf of the Federal Government, the Minister of Power, Chief Adebayo Adelabu, said the Electricity Act empowers states to leverage section resources to conscionable circumstantial vigor needs. Represented by the Director of Distribution, Umar Mustapha, Chief Adelabu emphasized collaboration betwixt national and authorities governments, arsenic good arsenic the backstage sector, to heighten powerfulness delivery.

He said, “The Act allows states, galore of which are larger than immoderate neighbouring countries, to instrumentality complaint of their destinies. They tin leverage solar, hydro, oregon upwind resources to physique grids that conscionable their economical and societal needs. By opening the worth concatenation to states and backstage investors portion fostering competition, consumers volition person much options, amended services, and innovative pricing.”

Adelabu cautioned against hasty amendments to the Act, noting that it should archetypal beryllium afloat implemented. He added that the Federal Ministry of Power is processing a National Electricity Policy Coordination Framework to align national and authorities actions, enactment the constitution of caller authorities regulators, and fortify capitalist assurance done argumentation consistency and regulatory clarity.

However, investors expressed reservations. The Group Managing Director/CEO of Sahara Power Group, Mr. Kola Adesina, argued that astir states deficiency the resources to negociate energy markets efficaciously and called for urgent amendments to code gaps.

He stated, “The states don’t person the wherewithal to physique energy infrastructure. Breaking down inefficiency into different level of inefficiency lone spreads the problem. Policy and regularisation indispensable beryllium aligned, and gaps successful the existent Act request to beryllium addressed quickly.”

At the event, NERC Vice Chairman, Musiliu Oseni, reflected connected the commission’s 2 decades of service, acknowledging advancement portion highlighting ongoing challenges. He noted that 15 states person received transportation orders, 11 completed the six-month transitional period, but lone 8 are afloat operational. He besides cited Edo, Ogun, and Oyo arsenic states yet to operationalize their regulatory commissions.

Oseni advised authorities regulators to support professionalism, stating, “Regulation is not populism oregon politics; it requires objectivity, analytical rigour, and independence. Remember, determination indispensable beryllium a inferior earlier you tin beryllium called a regulator.”

The statement underscores ongoing discussions astir decentralizing energy regularisation successful Nigeria and the readiness of subnational governments to negociate vigor markets effectively.