The Federal Government has urged electricity distribution companies (DisCos) to strengthen their relationship with state electricity regulators, warning that mutual respect and collaboration are vital for the future of Nigeria’s power sector.
Speaking at the Nigerian Electricity Regulatory Commission’s (NERC) quarterly stakeholders’ meeting in Lagos on Tuesday, Vice Chairman Musiliu Oseni called on the DisCos to prioritise openness, transparency, and accountability in their dealings with state regulators.
DisCos and States Clash Over Tariff Powers
Tensions have continued to rise between state regulatory commissions and distribution companies over who has the authority to fix electricity tariffs. While state governments, under the Forum of Commissioners for Power and Energy, argue that the Electricity Act, 2023 (Amended) empowers them to regulate their markets, DisCos—under the Association of Nigerian Electricity Distributors—insist that states cannot determine cross-border electricity pricing.
Oseni, while addressing the dispute, reminded DisCos that respect for state regulators was non-negotiable.
“Discos must do better with state regulators—first impressions last. Be open about your challenges so they can work with you. Above all, treat state regulators with the respect they deserve. A timely reminder that collaboration is essential to building a fair, resilient, and sustainable electricity market for Nigeria,” he said.
States Urged to Reduce Reliance on Subsidies
The NERC Vice Chairman also advised state regulators to focus on developing their respective electricity markets instead of depending on Federal Government subsidies.
This comes as Enugu State and others move to introduce state-based tariffs, a development that has been resisted by DisCos. The tariff face-off prompted NERC to summon all stakeholders for dialogue in Lagos.
Focus on Sector Transition and Regional Integration
Beyond tariff disputes, the two-day meeting featured technical discussions on the integration of generation plants into the SCADA system and Nigeria’s preparations for synchronisation with the West African Power Pool (WAPP). NERC disclosed that trial tests would soon be conducted to ensure smooth integration ahead of the June 2026 deadline.
“The commission directed NISO to conduct a synchronisation trial to address any imperfections ahead of full WAPP integration,” NERC stated in a post on its official social media platforms.
Tax Reforms and the Power Sector
Also at the meeting, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, presented insights on Nigeria’s new tax reform laws and their implications for the electricity sector. He emphasised that the reforms were designed to create a transparent and efficient fiscal environment.
“We want the sector to be able to thrive because your success is our success,” Oyedele told stakeholders, stressing the opportunities for growth, compliance, and improved revenue management.
