The Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Musiliu Oseni, has disclosed that the Commission has saved the Federal Government several trillion naira in electricity subsidies.
The development, Oseni claimed, had contributed significantly to the improved fiscal position of the Federal Government.
He stated this on Thursday in Abuja during the NERC@20 celebration, to mark the two decades of electricity sector regulation in Nigeria.
“Through effective regulation, the Commission has saved the Federal Government several trillion naira in subsidies, thereby contributing to the improved fiscal position of the FGN’’, he said.
The NERC vice chairman said that despite numerous challenges, the commission had achieved remarkable milestones since its establishment.
He listed the achievements to include overseeing the privatisation and unbundling of the formerly state-owned vertically integrated monopoly.
To this end, Oseni called for a policy rethink on the utilisation of the USD2 billion currently available to the Rural Electrification Agency (REA).
He argued that a substantial portion of the fund should be dedicated to providing an end-to-end solution to the power supply challenges facing the industrial hubs.
“There is a need for a policy rethink on the utilisation of the $2bn currently available to the Rural Electrification Agency (REA).
“A substantial portion of the fund should be dedicated to providing an end-to-end solution to the power supply challenges facing our industrial hubs. You can power access through mini-grids, but you can’t power your economy to prosperity,” he said.
Oseni explained that NERC is focusing more attention on unlocking private investments in the transmission segment of the power value chain, which requires substantial funding beyond the government’s fiscal capacity.
He announced the creation of a Transmission Infrastructure Fund (TIF) aimed at mobilising private capital for the expansion and modernisation of the nation’s transmission network.
“Our fiscal realities have shown that the government alone cannot fund transmission. A necessary regulatory framework will go a long way in attracting private investments,” he said, while calling for the support of policymakers to make the initiative succeed.
On the growing role of subnational regulators under the Electricity Act 2023, he disclosed that 15 states have received their transfer orders from the Commission, with 11 already past the six-month transitional period and eight currently operational.
However, he noted a regulatory vacuum in Edo, Ogun, and Oyo states.
In his address on the occasion, the Minister of Power, Chief Adebayo Adelabu, cautioned against the rush to amend the Electricity Act 2023.
He stressed the need for patience and resilience to allow the newly decentralised electricity market to mature and deliver its intended benefits.
He noted that the Electricity Act 2023, signed by President Bola Tinubu on June 6, 2023, represents the most significant transformation in Nigeria’s power sector since the Electric Power Sector Reform Act (EPSRA) of 2005.
The law, he said, effectively bifurcates constitutional responsibilities, empowering state governments to generate, transmit, distribute, and regulate electricity within their territories.
According to Adelabu, this landmark legislation has opened a new era of decentralised energy governance, granting states the autonomy to harness their unique resources, solar, hydro, or wind, to power their economies and communities.
“Let us not fall into the trap of constant, hasty amendments before the current Act has been fully tested. We must have the resilience and patience to allow this new model to mature,” he warned.
He described the Act as a “powerful tool for energy security,” noting that it enables states to take charge of their destinies and attract private sector participation.
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