New Initiative by NERC to Enhance Electricity Regulation in Nigeria

The Nigerian Electricity Regulatory Commission (NERC) has launched a landmark initiative known as the Forum of Nigerian Electricity Regulators (FONER), aimed at improving coordination and efficiency in electricity regulation across the nation. This initiative marks a significant evolution in Nigeria’s shift towards a multi-level electricity market.

Objectives of FONER

At the inaugural meeting in Lagos, NERC Chairman Dr. Musiliu Oseni highlighted the critical need for collaboration among stakeholders to mitigate regulatory gaps within the electricity sector. FONER is tasked with several key objectives:

• Facilitating Dialogue: FONER aims to promote a robust dialogue between NERC and State Electricity Regulators (SERs).
• Harmonizing Tariff Setting: The forum will encourage uniform approaches in tariff setting and market operations.
• Consumer Protection: FONER is dedicated to safeguarding consumer interests.
• Capacity Building: An essential aspect of the forum is supporting capacity-building through peer learning initiatives.

The Role of FONER in Market Reform

Dr. Oseni emphasized that FONER will act as a consultative platform for electricity market reforms, promoting transparency and accountability in the regulatory framework. He expressed, “Electricity is the oxygen for economic growth and prosperity,” underscoring the urgency of addressing the challenges within the industry through coordinated efforts.

“As regulators, we are not just arbiters; we are drivers of innovation, investment, and economic growth,” he stated. This forum is designed to ensure a cohesive regulatory environment that fosters investment and strengthens the capabilities of electricity regulators throughout Nigeria.

Structure and Leadership of FONER

The forum is supported by a Technical Working Group (TWG), established in September 2025, which includes representatives from NERC and SERs. At the inaugural meeting, the FONER Charter was formally signed, and its leadership was inaugurated, with Dr. Oseni serving as Chairman. Chijioke Okonkwo, from the Enugu State Electricity Regulatory Commission (ESERC), will assume the role of Vice Chairman, and Aisha Mahmud, NERC Commissioner for Stakeholder Management, has been appointed as Secretary.

Quarterly Meetings as a Collaborative Platform

NERC’s quarterly regulatory meetings provide a platform for exchanging ideas and enhancing cooperation between federal and state regulators. These meetings aim to address the pressing challenges in Nigeria’s electricity supply industry, ultimately striving to expand access to reliable power for the populace.

Addressing the Market Challenges

Dr. Oseni articulated that common challenges in the industry are often oversimplified to specific segments of the value chain, such as generation, transmission, or distribution. He stated, “The key issue is that we have an electricity market problem.” He emphasized the need to question not merely how much power can be generated but how the electricity market can operate sustainably.

To find out more about the regulatory landscape in Nigeria, check out NERC’s official website.

By launching FONER, NERC is taking proactive steps to create a more reliable and efficient electricity market in Nigeria, thereby contributing to the nation’s economic growth and improved quality of life for its citizens.