The Federal Competition and Consumer Protection Commission (FCCPC) has warned that varying regulatory standards across Nigeria’s emerging state electricity markets could discourage investment and create uncertainty for industry players.
The commission called for closer collaboration between federal and state electricity regulators, stressing that a unified consumer protection framework is essential to safeguard electricity users and provide regulatory certainty under the Electricity Act 2023.
Speaking on Thursday at a stakeholders’ meeting on consumer protection and regulatory cooperation in Abuja, the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said electricity consumers deserve the same level of protection regardless of their location.
The meeting brought together representatives of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA) and state electricity regulatory commissions following the creation of sub-national electricity markets under the Electricity Act 2023.
Bello described the legislation as a landmark reform that has reshaped Nigeria’s electricity sector by allowing states to establish independent electricity regulatory commissions.
He, however, emphasised that the success of the reforms depends on strong cooperation among regulators.
According to him, while the Act creates new opportunities for investment, improved service delivery and innovation, it also increases the need for coordinated regulation across the country.
Bello noted that electricity consumers are primarily concerned with reliable service and fair treatment rather than which regulatory authority is responsible for resolving their complaints.
He explained that seamless cooperation among regulatory institutions is necessary to ensure consumers receive timely and effective protection.
The FCCPC chief said NERC regulates the electricity industry, NEMSA oversees technical standards, state commissions supervise intrastate electricity markets, while the FCCPC provides economy-wide consumer protection and competition oversight.
He stressed that although their responsibilities differ, they are complementary and should operate in a coordinated manner through information sharing and mutual support.
Bello cited the suspension of the proposed replacement of obsolete Unistar prepaid meters in 2024 as an example of successful inter-agency collaboration.
He recalled that the FCCPC convened discussions involving NERC, NEMSA and electricity distribution companies after concerns emerged that consumers could be forced to pay for replacing obsolete meters or be subjected to estimated billing.
Following the engagement, the replacement exercise was suspended until regulatory requirements were met, with NERC and NEMSA endorsing the decision.
He noted that the eventual resolution ensured consumers would not bear the replacement costs, experience electricity supply interruptions or face estimated billing because of implementation delays.
According to Bello, effective regulation should focus on preventing consumer harm rather than merely resolving disputes after they occur.
He urged regulatory agencies to prioritise cooperation over institutional competition, adding that public interest should remain their shared objective.
Bello also stressed that coordinated regulation would become increasingly important as more states establish their own electricity markets.
He said Nigerians should enjoy equal protection regardless of where they live, with confidence that complaints will be handled fairly and regulatory decisions consistently enforced.
Also speaking, NERC’s Assistant Director and Head of Consumer Protection, Anthony Essien, said harmonised regulations are critical to maintaining investor confidence.
He noted that while the Electricity Act 2023 created state and regional electricity markets, inconsistent standards across the country could discourage investment.
Essien said collaboration among regulators would help develop consistent rules that strengthen consumer protection and improve regulatory effectiveness nationwide.
He also disclosed that the FCCPC has become an important 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 timely, saying it would enable state regulators to benefit from the experience of federal agencies while addressing emerging challenges collaboratively.
Similarly, the Chairman of the Anambra State Electricity Regulatory Commission, Prof Frank Nwoye Okafor, warned that fragmented regulations across states could create unnecessary uncertainty for investors.
He said the Electricity Act 2023 represents significant progress but stressed that coordinated regulation would make it easier for investors to operate across multiple states under a common framework.
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.
Since the legislation took effect, 16 states, including Lagos, Enugu, Plateau and Anambra, have established electricity regulatory commissions. Stakeholders, however, continue to warn that inconsistent regulatory standards could undermine investor confidence and weaken consumer protection if not properly coordinated.