The Nigerian Electricity Regulatory Commission (NERC) has warned that Nigeria’s transition to a decentralised electricity market could lead to an increase in legal disputes as more states assume responsibility for regulating their electricity sectors.
Speaking at a regional seminar for judges of state high courts in Lagos, the Chairman of NERC, Dr Musliu Oseni, said the implementation of the Electricity Act 2023 has created a new regulatory landscape that may result in disagreements involving consumers, state electricity regulators and the national regulator.
He explained that the seminar was organised to equip judges with a better understanding of the technical and legal issues surrounding the electricity sector, enabling them to effectively handle disputes arising from the ongoing reforms.
Oseni disclosed that NERC has already transferred regulatory powers to 16 states, with Gombe being the latest to receive the authority.
He said the decentralisation of electricity regulation would improve customer service, complaint resolution and tariff administration but could also create jurisdictional conflicts.
The NERC chairman stressed that court decisions would play a major role in shaping the success of the reforms. He recalled that a 2016 court judgment affected the commission’s ability to remove unsustainable electricity subsidies, leading to subsidy costs of about N520 billion in 2019.
Also speaking, the Lagos State Attorney-General and Commissioner for Justice, Lawal Pedro, represented by Solicitor-General Hamid Adenuga, said judges would play a vital role in interpreting the new electricity laws, resolving regulatory disputes, protecting consumers and providing the legal certainty needed to attract investors into the power sector.
