The Federal Government and private operators in the power sector are at odds over whether states can effectively regulate their own electricity markets under the new Electricity Act.
At an event marking the 20th anniversary of the Nigerian Electricity Regulatory Commission (NERC) in Abuja, the Minister of Power, Adebayo Adelabu, said devolving regulation to states would spur innovation and efficiency.
Represented by the Director of Distribution, Umar Mustapha, Adelabu argued that states could leverage solar, hydro, and wind resources to meet local needs. He cautioned against rushing to amend the new law, urging patience for its full implementation.
But Kola Adesina, Group Managing Director of Sahara Power Group, disagreed, saying most states lack the technical and financial capacity to manage power markets.
“When inefficiency is decentralized, it only spreads the problem,” Adesina warned.
NERC Vice Chairman, Musiliu Oseni, disclosed that 15 states had received transfer orders to establish their regulators, but only eight are currently operational. He urged professionalism and independence among the new regulators, warning against politicising electricity oversight.
“Regulation is not populism,” Oseni said. “It demands technical rigour and independence. Without a viable utility, there can be no viable regulator.”