The Federal Competition and Consumer Protection Commission (FCCPC) has cautioned that Nigeria’s evolving state electricity markets may struggle to attract investment if regulators across the country adopt differing standards.
The commission urged stronger cooperation among federal and state electricity regulators, stressing that a harmonised consumer protection framework is essential to guarantee consistent treatment for electricity consumers while providing confidence for investors under the Electricity Act 2023.
Speaking on Thursday during a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector in Abuja, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, said electricity users should enjoy the same level of protection regardless of where they live.
The engagement brought together representatives of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA) and state electricity regulatory commissions following the emergence of sub-national electricity markets under the Electricity Act 2023.
Bello described the Electricity Act as a major milestone in the reform of Nigeria’s power sector, noting that it has reshaped the regulatory system by enabling states to establish independent electricity regulatory commissions. He, however, said the success of the reforms depends largely on effective collaboration among regulatory institutions.
He stated, “The Electricity Act of 2023 represents one of the most significant reforms of Nigeria’s electricity sector in recent years. Beyond creating new opportunities for investment and improved service delivery, it has fundamentally reshaped our regulatory architecture.
“For the first time, states may establish their own electricity regulatory commissions and regulate intrastate electricity markets in ways that reflect their individual economic and social realities. This creates greater scope for innovation, quicker decision-making, and more responsive regulation. At the same time, it makes cooperation between our institutions more important than ever.”
Bello said electricity consumers are more concerned about uninterrupted service and fair treatment than the specific agency responsible for handling their complaints.
He added, “The success of this framework will depend not only on the effectiveness of each regulator, but also on how well we work together. Consumers experience electricity as one system. When supply is interrupted, or a bill appears incorrect, they are not concerned about which regulator has jurisdiction.
“They simply expect protection, ensuring that our institutions work seamlessly together in our responsibility and not theirs.”
According to Bello, while NERC oversees the electricity industry, NEMSA is responsible for enforcing technical standards, state regulators supervise intrastate electricity markets, and the FCCPC provides economy-wide consumer protection and competition oversight.
He explained that the mandates of the different agencies complement one another and should be coordinated rather than operated in isolation.
“These responsibilities are different, but they are complementary. Our objective is to consult, exchange information, support one another’s lawful actions, and ensure consumers receive timely and effective protection.”
To illustrate the benefits of inter-agency cooperation, Bello recalled the suspension of the proposed replacement of obsolete Unistar prepaid meters shortly after he assumed office in July 2024. He said the FCCPC convened discussions involving NERC, NEMSA and electricity distribution companies after concerns emerged that consumers could be made to pay for replacing obsolete meters or be subjected to estimated billing.
“Following deliberations, the replacement exercise was suspended, pending compliance with applicable regulatory requirements, a position that was endorsed by both NERC and NEMSA.
“The eventual resolution reflected the requirements of NERC’s order on the structured replacement of faulty and obsolete end-user consumer meters,” he noted.
Bello said the final decision protected consumers from the financial burden of replacing obsolete meters.
He said, “The order guaranteed that consumers would not bear the cost of replacing obsolete meters, would not experience interruption of electricity supply during the replacement exercise, and would not be subjected to estimated billing because of delays in implementation.
“Those safeguards reflected the principle that consumers should never be disadvantaged because infrastructure has reached the end of its useful life through no fault of their own.”
He maintained that regulators should focus on preventing consumer harm rather than simply responding to complaints after they arise.
He stated, “Success should therefore be measured not only by the number of complaints resolved, but also by the number of complaints prevented.”
Calling for greater institutional cooperation, Bello said rivalry among regulators would undermine the objectives of the ongoing reforms.
He added, “Strong regulation is not built on institutional rivalry. It is built on cooperation, mutual respect, and a shared commitment to the public interest.”
He further stressed that coordinated regulation would become increasingly important as more states establish their own electricity markets.
He said, “Our success should not be judged by how firmly we protect our individual jurisdictions but by how effectively we work together and how we protect electricity consumers.
“Wherever an electricity consumer lives in Nigeria, they should have the same confidence that they will be treated fairly, their complaints will be resolved effectively, and lawful regulatory decisions will be respected.”
Also speaking at the event, NERC’s Assistant Director and Head of Consumer Protection Department, Anthony Essien, said a unified regulatory approach would help sustain investor confidence as more state electricity markets emerge.
He Essien, “The Electricity Act 2023 established state and regional electricity markets across the country.
Having a convergence like this is very paramount to foster collaboration and coordinated efforts towards serving the different electricity markets that have been created, especially considering customer protection.
“It would not be easy, especially looking at investors coming in and having different standards across 36 states.
But if we come together and foster a unified and well-thought-out effort to bring forward laws, it would further strengthen our mandates across the different states.”
Essien also noted that the FCCPC has become a key partner in NERC’s consumer complaints process and now participates in the commission’s Consumer Complaints Forum.
The Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as coming at the right time, saying it offers state regulators an opportunity to benefit from the experience and expertise of federal agencies.
Okonkwo stated, “This collaborative arrangement puts us in a position to share ideas, take advantage of what could also come from the federal government and implement it within our state for the ultimate protection of our citizens.
“Wherever we have gaps or challenges, we could come together to resolve them for the benefit of all, because we are all new in this sector and are trying to develop something that has never been done anywhere else in the world.”
Similarly, the Chairman of the Anambra State Electricity Regulatory Commission, Prof Frank Nwoye Okafor, warned that inconsistent regulations among states could discourage investment by creating uncertainty for businesses.
Okafor noted, “The reforms brought about by the Electricity Act 2023 were a step in the right direction. But when you have regulatory fragmentation, sometimes it creates a coordination problem.
“The biggest nightmare for an investor is trying to figure out 36 different rules. But if we have this sort of coordination, then we start singing from the same hymn sheet.”
The Electricity Act 2023 brought an end to decades of exclusive federal control of Nigeria’s electricity sector by allowing states that meet constitutional and regulatory requirements to establish and regulate their own electricity markets.
Since the legislation took effect, 16 states, including Lagos, Enugu, Plateau and Anambra, have established electricity regulatory commissions.
Although stakeholders expect the reforms to boost investment and improve electricity supply, they have consistently warned that inconsistent regulations across states could complicate compliance for investors and weaken consumer protection.