The Nigerian Electricity Regulatory Commission (NERC) has acknowledged the escalating vulnerabilities in the country’s power sector and called for urgent, coordinated action to address systemic weaknesses.
NERC Chairman Musiliu Oseni made the remarks on Wednesday 25 March 2026, during the inauguration of the Forum of Nigerian Electricity Regulators (FoNER) in Lagos.
He stressed that the nation’s persistent electricity shortages go far beyond mere shortfalls in generation, transmission, or distribution infrastructure.
Oseni warned against oversimplifying the sector’s woes by focusing narrowly on individual segments of the value chain.
Instead, he identified the fundamental challenge as a broader “electricity market problem” that undermines long-term viability and efficient service delivery.
“The challenge facing our industry is often reduced to a specific segment of the value chain: generation, transmission or distribution problem. However, this reductionism is misleading; the key issue is that we have an electricity market problem,” Oseni stated.
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He emphasised that the central concern is not merely increasing the volume of power produced, but ensuring the market functions in a sustainable manner to guarantee reliable supply and attract necessary investments.
“The main question is not how much power can we generate. Rather, the key question is: how can our market operate sustainably?” he added.
Oseni urged federal and state regulators to collaborate closely through the new forum to eliminate regulatory arbitrage, where operators might exploit inconsistencies between different regulatory regimes. He charged participants to discharge their responsibilities with utmost integrity and focus on delivering tangible economic benefits.
“Electricity is the oxygen for economic growth and prosperity. Unfortunately, our industry is fraught with varying challenges that require effective coordination and synergy among the captains of the industry,” Oseni noted.
The inauguration of FoNER, formalised under Section 230(9) of the Electricity Act 2023, aims to harmonise regulatory frameworks across federal and state levels, bolster consumer protection, and create a more conducive environment for investment in the power sector.
The forum is expected to serve as a key platform for aligning policies, closing regulatory gaps, and fostering a more resilient electricity market capable of supporting Nigeria’s broader economic ambitions.
