Regulatory Conflicts Threatening Electricity Market Reforms, Says Minister

The Minister of Power, Chief Joseph Tegbe, has urged stakeholders in the Nigerian Electricity Supply Industry (NESI) to embrace collaboration over competition.

He warned that regulatory conflicts among institutions could undermine the success of Nigeria’s decentralised electricity market.

Speaking at the workshop on Legal, Policy and Regulatory Harmonisation between Federal and State Institutions on the Decentralisation of the Nigerian Electricity Supply Industry held in Abuja on Tuesday, Tegbe said the Electricity Act envisages a cooperative framework where federal and state institutions work in synergy rather than at cross purposes.

“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,” the minister said.

He stressed that the Electricity Act did not create parallel electricity industries but complementary electricity markets operating within a single national framework, making regulatory coherence critical to the sector’s growth.

According to him, while the Federal Government retains an important leadership role, state governments now have expanded responsibilities under the decentralised market.

He added that the Nigerian Electricity Regulatory Commission (NERC) continues to regulate matters within its jurisdiction, while state electricity regulators are emerging to oversee their respective markets.

Tegbe noted that every player in the value chain has a distinct but interconnected role, saying transmission remains a national asset, distribution companies continue to serve millions of electricity customers, generation companies supply power to the national grid, private investors provide capital, development partners offer technical support, while consumers remain at the centre of every policy decision.

“None of these institutions exists in isolation. Our success is interconnected. This is why collaboration must become the defining principle of our decentralised electricity market,” he said.

The minister warned that regulatory inconsistencies could discourage investment and create uncertainty in the electricity market.

He said investors, developers and consumers all stand to benefit from a coordinated regulatory environment.

“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 added.