There are significant signs that the state governments, which are considered to be federating units under the constitution, may have started the process of setting up their respective utility commissions in accordance with the just-passed Electricity Act 2023.
However, the Nigerian Electricity Regulatory Commission (NERC) has finalized plans for a stakeholder workshop in July to guarantee a smooth transfer and collaboration.
While the Electricity Act 2023 and the recent constitutional amendment are novel to Nigeria, the regulation of public utilities at the sub-national level has been successfully implemented in other countries, such as India, Australia, Canada, and the United States of America, where federal and state electricity regulation and markets are clearly defined.
In the short to medium term, we anticipate that all of the federation’s states may create public utility commissioners tasked with overseeing the regulation of the electricity market inside their respective states’ borders.
In order to advance and meet the objectives outlined by the new legislation, stakeholders must coordinate their efforts and resources toward the common aim of offering efficient service to all energy users.