FCCPC warns against fragmented state electricity market regulations
July 31, 2026 2:34 am
Federal Competition and Consumer Protection Commission. Photo: FCCPC
Electricity investors could face uncertainty if Nigeria’s emerging state electricity markets operate under different regulatory standards, the Federal Competition and Consumer Protection Commission warned on Thursday, calling for a harmonised consumer protection framework across the country.
The commission also urged closer collaboration among federal and state electricity regulators, warning that fragmented regulation could weaken consumer protection and discourage investment as Nigeria implements the Electricity Act 2023.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, made the call at a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector, held at the commission’s headquarters in Abuja.
The event brought together officials of the Nigerian Electricity Regulatory Commission, the Nigerian Electricity Management Services Agency and state electricity regulatory commissions following the establishment of sub-national electricity markets under the Electricity Act 2023.
Bello described the legislation as one of the most significant reforms in Nigeria’s electricity sector, saying it had reshaped the country’s regulatory framework by empowering states to establish independent electricity regulatory commissions.
He, however, cautioned that the success of the reforms would depend on institutional collaboration rather than competition among regulators.
“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,” he said.
Bello explained that while NERC regulates the electricity sector, NEMSA enforces technical standards, state regulators oversee intrastate electricity markets, and the FCCPC provides economy-wide consumer protection and competition oversight.
According to him, the agencies’ responsibilities are complementary and should be coordinated to ensure effective consumer protection.
He cited the suspension of the proposed replacement of obsolete Unistar prepaid meters in 2024 as an example of successful regulatory collaboration. He said the FCCPC worked with NERC, NEMSA and electricity distribution companies to suspend the exercise pending compliance with regulatory requirements.
“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,” Bello stated.
He urged regulators to avoid institutional rivalry, stressing that consumers across Nigeria should enjoy the same level of protection regardless of location.
Also speaking, the Assistant Director and Head of Consumer Protection Department at NERC, Anthony Essien, said the decentralisation of Nigeria’s electricity market had made collaboration among regulators indispensable.
He warned that investors could face challenges if states operated different regulatory standards.
“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 said.
Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as timely, saying it would enable state regulators to share ideas and address emerging challenges collectively.
Similarly, the Chairman of the Anambra State Electricity Regulatory Commission, Prof. Frank Nwoye Okafor, said regulatory coordination would reduce uncertainty for investors operating across multiple states.
“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,” Okafor said.
The Electricity Act 2023 ended decades of exclusive federal control of Nigeria’s electricity market by empowering states to establish and regulate their own electricity markets after receiving constitutional and regulatory approvals.
The reforms have led to the creation of 16 state electricity regulatory commissions. Industry stakeholders, however, have warned that inconsistent regulations across states could create compliance burdens for investors and weaken consumer protection, underscoring the need for stronger coordination among regulators.
Damilola Aina is a journalist at Punch Newspapers with over five years of experience covering energy, business, investment, infrastructure, and property sectors. He specializes in producing well-researched and insightful reports that inform readers and provide clarity on complex topics. Damilola’s work demonstrates practical newsroom experience, editorial insight, and a strong commitment to accurate and engaging journalism.
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