By Matthew Johnson
Professor of Energy and Electricity Law at the University of Lagos, Yemi Oke, SAN, has warned that regulatory conflicts and overlapping responsibilities among electricity sector agencies could undermine the gains of Nigeria’s ongoing power sector reforms.
Oke, who spoke at the Magodo Associates Policy Dialogue Session on Sunday, said the Electricity Act 2023 had significantly liberalised the power sector by allowing states, private investors and other stakeholders to participate more actively in electricity generation, transmission and distribution.
He, however, said the emergence of state electricity regulators had created the potential for conflicts with the Nigerian Electricity Regulatory Commission, NERC, particularly where their respective jurisdictions were not clearly defined.
According to him, the constitutional and legislative changes allowing states to generate, transmit and distribute electricity within their territories represented a major shift from the previous system in which the Federal Government exercised dominant control over the sector.
Oke cited the situation involving NERC and the Imo State Electricity Regulatory Commission, saying the Electricity Act 2023 did not clearly delineate federal and state regulatory jurisdictions in some operational areas.
He warned that competing statutory regimes and overlapping responsibilities among NERC, the Transmission Company of Nigeria, TCN, the Nigerian Electricity Management Services Agency, NEMSA, and the Rural Electrification Agency, REA, could create regulatory uncertainty if their roles were not properly coordinated.
The energy law expert also identified infrastructure deficits and institutional inefficiency as major challenges that continued to undermine efforts to improve electricity supply in the country.
He noted that the restructuring of the former Power Holding Company of Nigeria, PHCN, into generation and distribution companies was intended to improve efficiency, but said infrastructure and technical capacity challenges had persisted.
Oke further raised concerns over Nigeria’s continued dependence on foreign technology and expertise from countries including the United Kingdom, Germany, Turkey, India and the United States.
He said excessive dependence on foreign technology placed pressure on the country’s foreign exchange reserves, created strategic vulnerabilities and limited the development of indigenous expertise in the power sector.
Oke urged Nigeria to draw lessons from countries such as China and South Africa, which, he said, had developed stronger domestic energy technology and workforce-development systems.
He said the National Power Training Institute, established under the Electricity Act, was designed to promote human-resource development, capacity building, research and technical expertise in the sector, stressing that effective implementation of its mandate was necessary.
On the way forward, Oke called for increased investment in electricity generation and transmission infrastructure, greater integration of renewable energy sources and stronger coordination among regulatory institutions.
He also advocated deliberate development of local expertise and technology, as well as a strategic roadmap and sustainable financing mechanisms for the sector.
The professor called for the revitalisation of fiscal incentives for local energy manufacturing, including tax holidays, VAT exemptions and import-duty waivers.
Oke said Nigeria’s transition towards sustainable energy security would depend largely on its ability to reduce dependence on fossil fuels, strengthen its electricity market and develop the capacity to manufacture and maintain critical energy infrastructure locally.
He described the Electricity Act 2023 as a significant stage in the evolution of Nigeria’s power sector reforms, following the limitations of the Electric Power Sector Reform Act 2005.
According to him, the Federal Government had provided the legislative framework for liberalisation and decentralisation, but regulators, investors and other stakeholders must utilise the opportunities created by the reforms to improve electricity supply.
He said the effectiveness of the 2023 Act would ultimately provide the basis for assessing the need for further legislative and institutional reforms in Nigeria’s quest for sustainable and reliable electricity.
Meanwhile, retired professor of Lagos State University and chairman of the seminar subcommittee of Magodo Association, Olatunde Makanju, said Nigeria could not achieve meaningful development without reliable electricity.
Makanju, who spoke on the impact of inadequate electricity infrastructure on power generation, said virtually every aspect of economic and domestic activities depended on stable electricity supply.
He expressed concern that corruption was undermining the benefits of ongoing electricity reforms by the Federal Government and urged Nigerians to continue demanding accountability and improved service delivery.
He said the country must sustain efforts to address challenges in the power sector if the desired dividends of the reforms were to be achieved.
“For Nigeria to develop properly, power supply remains a key factor. Industrialisation and other jobs rely on power supply to succeed,” Makanju said.