The Federal Competition and Consumer Protection Commission (FCCPC) has called for closer collaboration among regulators in Nigeria’s electricity sector to ensure uniform consumer protection, regulatory certainty and improved service delivery as more states establish independent electricity markets.
The Commission said the ongoing decentralisation of the electricity sector following the enactment of the Electricity Act, 2023, has created a new regulatory landscape that requires effective coordination among federal and state institutions to protect consumers and promote investor confidence. Blueprint reports
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, made the call during a Stakeholders’ Engagement on Consumer Protection and Regulatory Cooperation in Nigeria’s Electricity Sector held in Abuja.
Electricity Act changes regulatory landscape
Bello explained that the Electricity Act, 2023, fundamentally altered the structure of Nigeria’s electricity industry by granting states the constitutional authority to establish electricity regulatory commissions and oversee electricity generation, transmission and distribution within their jurisdictions.
The development has led several states to begin setting up their own electricity markets and regulatory frameworks, complementing the responsibilities previously exercised largely by the Nigerian Electricity Regulatory Commission (NERC).
According to Bello, while the decentralised system presents new opportunities for improved electricity supply and investment, it also demands greater cooperation among regulators to avoid policy inconsistencies and ensure consumers enjoy the same level of protection irrespective of their location.
Need for regulatory cooperation
The FCCPC boss stressed that the Commission, the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA) and the various State Electricity Regulatory Commissions (SERCs) have distinct but complementary responsibilities.
He noted that collaboration among the agencies would strengthen oversight, eliminate regulatory overlaps and ensure that consumers receive prompt and effective protection.
According to him, sector regulators possess technical expertise specific to the electricity industry, while the FCCPC brings broad experience in consumer rights protection and competition regulation across the economy.
“Our objective is to consult, exchange information, support one another’s lawful actions and ensure consumers receive timely and effective protection. That is the hallmark of mature regulatory governance,” Bello said.
He added that consumer protection should go beyond resolving complaints after they occur, stressing the need for regulators to identify risks early, prevent consumer harm and build public confidence in Nigeria’s evolving electricity market.
Lessons from prepaid meter intervention
Bello cited the Commission’s intervention in 2024 over the proposed replacement of obsolete Unistar prepaid electricity meters as an example of successful regulatory collaboration.
He recalled that concerns had emerged that electricity consumers could be compelled to pay for replacement meters or risk estimated billing and possible disruption of power supply.
According to him, the FCCPC subsequently convened meetings involving NERC, NEMSA and electricity distribution companies to address the concerns.
He explained that the intervention respected NERC’s statutory regulatory role while reinforcing existing consumer protection mechanisms rather than creating parallel regulatory processes.
The FCCPC chief said the experience demonstrated the importance of institutional cooperation in addressing consumer issues effectively.
NERC advocates harmonised standards
Also speaking at the event, Assistant Director and Head of Consumer Protection at the Nigerian Electricity Regulatory Commission, Mr. Anthony Essien, said harmonisation of regulatory standards has become increasingly important following the emergence of federal, state and regional electricity markets under the Electricity Act.
He observed that while decentralised regulation would bring regulatory oversight closer to electricity consumers, differences in regulatory standards among states could create uncertainty for investors and market operators.
Essien said adopting harmonised regulatory approaches would strengthen consumer protection, promote effective oversight across jurisdictions and create a more predictable business environment for participants in the electricity industry.
According to him, regulatory consistency remains essential to attracting long-term investment needed to improve electricity infrastructure and expand access to reliable power supply across the country.
States to play greater role
In his remarks, Executive Commissioner of the Anambra State Electricity Regulatory Commission (ASERC), Dr. Nnaemeka Ewelukwa, said the establishment of state electricity regulatory commissions would bring regulation closer to consumers and improve engagement between investors and state governments.
He noted that state regulators are strategically positioned to understand local realities and respond more quickly to consumer complaints and operational challenges within their respective jurisdictions.
Ewelukwa expressed optimism that closer collaboration between federal and state regulators would strengthen the implementation of electricity sector reforms while promoting investment and improved service delivery.
Background
Nigeria’s electricity sector entered a new phase following the signing of the Electricity Act, 2023, which ended the exclusive control previously exercised by the Federal Government over electricity generation, transmission and distribution.
The law empowers state governments to establish electricity markets, license operators within their jurisdictions and create independent regulatory institutions to oversee electricity activities.
Several states have since commenced the process of establishing electricity regulatory commissions as part of efforts to attract private investment, improve power supply and accelerate economic development.
Industry stakeholders, however, have consistently emphasised the need for strong coordination among regulators to ensure that decentralisation does not result in conflicting regulations, uncertainty for investors or unequal levels of consumer protection.
The FCCPC maintained that sustained collaboration among regulatory institutions will be critical to building a competitive, transparent and consumer-focused electricity market capable of supporting Nigeria’s long-term economic growth.