Abuja: Nigeria’s Minister of Power, Adebayo Adelabu, has commended the Nigerian Electricity Regulatory Commission (NERC) for its two decades of exemplary service in steering Nigeria’s power sector transformation. Adelabu made the remarks while delivering a keynote address at the technical session themed ‘The Political Economy of the Power Sector Reforms under Bifurcated Constitutional Responsibilities’ to mark NERC’s 20th Anniversary, held in Abuja, the nation’s capital.
According to Voice of Nigeria, the minister’s address traced the historical evolution of Nigeria’s electricity sector, highlighting milestones achieved through the Electricity Act 2023 and the Nigerian government’s vision for a cooperative and sustainable power market. Adelabu praised NERC’s pivotal role since the enactment of the Electric Power Sector Reform Act (EPSRA) in 2005, which liberalised the electricity industry and transitioned it from a state-owned utility to a private-sector-driven market.
He said, “Over the past two decades, NERC has laid the foundation for market stability through robust tariff frameworks, consumer protection mechanisms and regulatory guidelines that continue to shape our power sector.” The minister described the Electricity Act 2023, signed into law by President Bola Ahmed Tinubu on 6 June 2023, as “the most profound change in the history of Nigeria’s power sector.”
He explained that the Act, along with recent constitutional amendments, now empowers state governments to generate, transmit, distribute and regulate electricity within their territories. “This shift from a single national electricity market to multiple sub-national markets marks a new era of decentralised power governance, unlocking the immense potential of states to pursue energy independence and tailored solutions,” Adelabu stated.
The minister outlined three key benefits of the new framework: unlocking sub-national potential, driving competition and investment, and incremental electrification that offers a pragmatic path to reliable power nationwide. Adelabu cautioned that the emerging sub-national markets must be carefully managed to avoid fragmentation and conflicting regulations that could undermine investor confidence.
He called for a collaborative federal framework built on four key pillars: policy and regulatory harmonisation, addressing liquidity challenges, strengthening the entire value chain, and prioritising citizen-centred reforms. Adelabu reaffirmed the government’s commitment to transparent tariff setting, enhanced metering through the Presidential Metering Initiative, and greater accountability.
Celebrating NERC’s 20th Anniversary, Adelabu praised NERC’s professionalism and resilience over the past 20 years, reaffirming the Ministry’s vision for a cooperative federal electricity framework that guarantees reliable supply, industrial growth, and improved living standards for all Nigerians.
In his remarks, the Group Managing Director of Sahara Power Group, Kola Adesina, urged Nigeria’s power stakeholders to embrace policy consistency, regulatory stability, and national alignment to attract investment and ensure sustainable supply. Adesina commended President Tinubu’s 4 trillion debt clearance initiative for GenCos and gas suppliers, describing it as a “bold step that could unlock possibilities across the electricity value chain.”
The Nigerian Electricity Regulatory Commission (NERC) was established in 2005 under the Electric Power Sector Reform Act to regulate and oversee the Nigerian Electricity Supply Industry (NESI). Its mandate includes promoting transparency, efficiency, and fairness in generation, transmission, distribution, and consumer protection. The 20th Anniversary event was attended by key stakeholders, including Senator Enyinnaya Abaribe, Chair of the Senate Committee on Power; Hon. Victor Nwokolo, Chair of the House Committee on Power; ministers, former permanent secretaries, power utility heads, development partners, and members of the National Assembly.