FCCPC SEEKS UNIFORM ELECTRICITY REGULATIONS TO PROTECT CONSUMERS, ATTRACT INVESTMENT
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By Aishat Momoh. O.
The Federal Competition and Consumer Protection Commission (FCCPC) has warned that Nigeria’s emerging state electricity markets could create uncertainty for investors if they operate under different regulatory standards, calling for a harmonised consumer protection framework across the country.
The commission also urged stronger collaboration among federal and state electricity regulators, cautioning that fragmented regulation could weaken consumer protection and discourage investment as the implementation of the Electricity Act 2023 gathers momentum.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, made the call on Thursday at a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector, held at the commission’s headquarters in Abuja.
The meeting brought together officials of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), 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 power sector, noting that it had transformed the regulatory landscape by empowering states to establish independent electricity regulatory commissions.
He, however, stressed that the success of the reforms would depend on collaboration among regulators rather than institutional rivalry.
“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,” Bello said.
He explained that while NERC regulates the electricity industry, NEMSA enforces technical standards, state commissions oversee intrastate electricity markets, and the FCCPC provides economy-wide consumer protection and competition oversight.
According to him, these responsibilities are complementary and must be effectively coordinated to ensure consumers receive consistent protection nationwide.
Bello cited the suspension of the proposed replacement of obsolete Unistar prepaid meters in 2024 as a successful example of regulatory collaboration, noting that the FCCPC worked with NERC, NEMSA and electricity distribution companies to halt the exercise until regulatory requirements were met.
“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,” he said.
He urged regulators to maintain a unified approach, stressing that electricity consumers should enjoy the same level of protection irrespective of their location.
Also speaking, NERC’s Assistant Director and Head of Consumer Protection Department, Anthony Essien, said decentralisation of the electricity market had made cooperation among regulators more critical than ever.
He warned that investors could face significant challenges if individual states adopted 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.
The Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as timely, saying it would enable state regulators to exchange ideas and collectively address emerging challenges.
Similarly, Chairman of the Anambra State Electricity Regulatory Commission, Prof. Frank Nwoye Okafor, said greater 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 sector by empowering states to establish and regulate their own electricity markets after meeting constitutional and regulatory requirements.
The reforms have so far led to the establishment of 16 state electricity regulatory commissions. However, industry stakeholders continue to warn that inconsistent regulations across states could increase compliance costs for investors and weaken consumer protection, underscoring the need for stronger regulatory coordination nationwide.
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