NERC: Group seeks legal clarity to safeguard power sector stability

A civil society organisation, the Dynamic Patriotic Citizens Foundation, has called for a legal review of the leadership structure of the Nigerian Electricity Regulatory Commission (NERC).

The group stated that the move is necessary to ensure compliance with laws governing the Commission’s operations, describing it as a proactive step to enhance transparency, regulatory certainty, and long-term stability in Nigeria’s power sector.

The call was contained in a letter addressed to the Office of the Attorney General of the Federation, in which the group, through its solicitors, Tolu Babaleye & Co. urged the Federal Government to ensure that the appointment of the Executive Chairman of the Nigerian Electricity Regulatory Commission, Dr. Musiliu Oseni, fully complies with the tenure provisions of the Electricity Act.

The organisation noted that while reforms in the Nigerian Electricity Supply Industry (NESI) have gained momentum under the current administration, institutional clarity remains essential to sustaining those gains.

According to the memorandum, a careful interpretation of the law suggests that commissioners are limited to a cumulative maximum of ten years in office.

The group observed that Oseni’s tenure, which reportedly began in February 2017, is approaching the statutory limit set for commissioners. They added that his continued service, particularly in an elevated capacity, may require careful legal review to ensure full alignment with the provisions of the law.

It emphasised that addressing such issues promptly would help avert potential legal disputes and safeguard the continuity of regulatory operations within the Nigerian Electricity Regulatory Commission.

The foundation stressed that its intervention is not intended to question the competence or contributions of the leadership of the Nigerian Electricity Regulatory Commission, but rather to reinforce due process and strengthen institutional credibility.

It warned that unresolved legal ambiguities could expose the Commission to potential litigation, with possible implications for tariff decisions, investor confidence, and the overall stability of the power sector.

Highlighting the importance of a stable regulatory environment, the group noted that NERC plays a central role in overseeing electricity pricing, licensing, and market discipline.

As such, any uncertainty surrounding its leadership could have ripple effects across the entire power value chain—from generation and transmission to distribution and end-user delivery.

The organisation therefore called on the Attorney General to advise the Presidency on the need for a comprehensive legal review of the appointment, with a view to ensuring that the Commission’s leadership remains beyond reproach.

It also suggested that, if necessary, appropriate steps be taken to regularise the situation in a manner consistent with the law.

Expressing confidence in the government’s reform agenda, the group said that a timely clarification would further demonstrate a commitment to the rule of law and strengthen public trust in the ongoing transformation of Nigeria’s electricity sector.

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The letter read: “Our client is concerned that this legal ambiguity may expose the Presidency to unnecessary litigation. We therefore respectfully urge you to use your good office to advise Mr. President and Commander in Chief to: “Review the Appointment: Direct a legal review of the appointment instrument to ensure it aligns with the cumulative tenure limits prescribed by the Electricity Act.

“Regularize the Leadership: Consider a path that ensures the leadership of this critical regulatory body is beyond legal reproach, perhaps by selecting a Chairman whose cumulative service strictly adheres to the statutory ten-year limit.

“We believe that proactive clarification on this matter will further demonstrate Your Excellency’s unwavering respect for the Rule of Law and protect the integrity of the power sector reforms”

It added that such proactive governance would send a positive signal to both local and international investors, who rely on regulatory predictability in making long-term commitments.

The foundation reaffirmed its willingness to provide further legal insights or documentation to support the review process, reiterating that its ultimate goal is to see a resilient, transparent, and legally sound power sector that meets the needs of Nigerians.