Nigeria’s energy sector is governed by a mix of federal and state regulations, shaped significantly by the Electricity Act 2023. This act empowers states to regulate electricity generation, transmission, and distribution within their territories, including areas covered by the national grid.

Key Aspects of Energy Regulations in Nigeria

• State Electricity Regulatory Commissions (SERCs): States can establish SERCs to regulate electricity activities within their jurisdictions, similar to the Nigerian Electricity Regulatory Commission (NERC) but focused on state-specific needs.
• Decentralization of Electricity Regulation: The Electricity Act 2023 allows states to make laws concerning electricity generation, transmission, and distribution in all areas of their states.
• Tariff Regulation: States can set electricity tariffs reflecting local economic realities, considering factors like cost of generation, transmission, distribution, and income levels ¹.

Regulatory Bodies and Their Roles

• Nigerian Electricity Regulatory Commission (NERC): Oversees electricity regulation at the federal level, retaining authority in states without their own regulatory frameworks.
• State Electricity Regulatory Commissions (SERCs): States like Lagos, Edo, and Kaduna have enacted laws to regulate their electricity markets.

Focus on Mini-Grids and Off-Grid Systems

• Regulation of Mini-Grids: The Electricity Act 2023 provides states with authority to regulate off-grid and mini-grid systems.
• Encouraging Decentralized Energy Solutions: States can support mini-grids for enhancing electricity access in rural or remote areas.

Addressing Electricity Theft

• Provisions Against Electricity Theft: Laws like the Lagos State Electric Power Sector Reforms Law 2018 and the Electricity Act 2023 criminalize electricity theft, with penalties for offenses ¹.

Recent Developments

The Nigerian Independent System Operator (NISO) intervened in a tariff dispute in Enugu State, emphasizing the need for coordination among stakeholders to ensure market stability ².

Conclusion

Nigeria’s energy regulations are evolving with the Electricity Act 2023, empowering states to play a more significant role in regulating their electricity sectors. This decentralization aims to improve electricity access and management at the local level.