Why Nigeria’s power regulatory system is underperforming — Experts

Experts under the auspices of the Concerned Energy Stakeholders have blamed leadership failures for the underperformance of Nigeria’s power regulatory system.

The experts in their analysis pointed out that the system has all it takes to deliver but failed due to years of weak leadership and politically motivated appointments.

For over 20 years, the analysts stated that appointments into the leadership of the Nigerian Electricity Regulatory Commission (NERC) have tilted more towards politics than technical merit, a trend they described as dangerous for a sector that sits at the heart of Nigeria’s economic stability.

Despite the extensive reforms provided under the Electricity Act 2023, the analysts insisted that NERC’s persistent leadership deficiencies have remained a primary reason for the sector’s recurring failures.

“Since the commission’s creation two decades ago, NERC has repeatedly appointed individuals with little or no sectoral grounding as chairmen.

 “In each case, these leaders have had to rely heavily on long-serving senior management staff to navigate the complex regulatory terrain,” they said.

The experts argued that appointing political figures to head a body as technical as NERC is “abnormal and grossly misaligned with best practices”.

They believe that seasoned professionals who have grown through the ranks within the commission would bring far more stability and technical competence to the commission.

While the National Assembly engages in politically charged debates over NERC nominations, the analysts said the real crisis lies in the executive’s failure to appoint a qualified substantive chairman in a timely and merit-driven manner.

“The uproar in the Senate is a distraction,” energy analysts said, adding that “the real problem is the refusal to look inward and elevate people who understand the system.”

They expressed concerns that Nigeria might be on the verge of a full regulatory shutdown by December 1, 2025, when all positions in NERC are vacant and government delays in appointing qualified technocrats to fill the ministerial vacant position.

“By December 1, 2025, both the Chairman and Vice Chairman as well as some commissioners’ positions at NERC will be vacant.

 The Electricity Act does not provide for an Acting Chairman once both offices are empty.

“This means the Commission may legally have no leadership whatsoever unless the President urgently appoints a new set of substantive commissioners,” the experts said.

Compounding the issue is the principle of geopolitical balance. Analysts note that several zones have never produced a NERC chairman, yet new nominations appear to ignore this imbalance.

According to the experts, yet to produce a chairman included South West, North Central and North East, warning that disregarding these zones again could deepen political tensions and weaken the commission’s legitimacy.

The Electricity Act 2023 stipulates a 5-year tenure for Chairman and 4-year tenure for commissioners.

All reappointments must be made before the expiration of ongoing terms (Section 36).

With multiple terms ending within months of one another, and with no acting mechanism to keep the regulatory system running, analysts warned that Nigeria may experience a total regulatory shutdown, endangering electricity market operations, tariff reviews, licensing, consumer protection, and market settlement.

They stressed that only urgent, merit-based, regionally balanced appointments — consistent with the Electricity Act — can prevent further disarray.