UGO AMADI
As the nation continues to look for ways of improving its power sector, Nigeria’s power regulatory framework is facing an unprecedented crisis, and experts say the system has all but collapsed due to years of weak leadership and politically motivated appointments.
As a matter of fact, for the past 20 years, appointments into the leadership of the Nigerian Electricity Regulatory Commission (NERC) have tilted more towards politics than technical merit, a trend analysts describe 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, many economic analysts who spoke with Daily Champion insist that NERC’s persistent leadership deficiencies remain a primary reason for the sector’s recurring failures.
Industry experts opined that Nigeria’s power regulatory system has faced several challenges, leading to its current state of disarray. According to them , some key reasons include:
Lack of Clear Policies: Inconsistent and unclear policies have hindered the sector’s development and created uncertainty for investors. Inadequate Regulatory Framework: The regulatory framework has been criticized for being weak, leading to poor enforcement of rules and regulations.
The regulatory body, NERC, has faced funding challenges, limiting its ability to effectively regulate the sector ,also, Political interference and influence have undermined the independence of the regulatory body, leading to poor decision-making.
The sector has been criticized for lacking transparency, making it difficult to track progress and identify areas for improvement, Moreover, the Nigeria’s power infrastructure is outdated and in need of significant investment, leading to frequent power outages and inefficiencies.
Multiple Stakeholders: The sector has multiple stakeholders, including government agencies, private companies, and international organizations, leading to conflicting interests and challenges in coordination.
Limited Private Sector Participation: Despite efforts to attract private sector investment, the sector has seen limited participation, hindering its development and Legacy Issues: Nigeria’s power sector has a history of legacy issues, including unpaid debts and stranded assets, which continue to affect the sector’s performance.
A Leadership Structure Built on Politics, Not Expertise
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.
Experts argue that appointing political figures — including the current appointee who is a former local government chairman 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.
National Assembly Turmoil Masks a Deeper Problem
While the National Assembly engages in politically charged debates over NERC nominations, experts say 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,” one energy economist said. “The real problem is the refusal to look inward and elevate people who understand the system.”
A Looming Leadership Vacuum
Nigeria may be on the verge of a full regulatory shutdown. 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.
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.
Zonal Breakdown of Past and Current Chairmanship Appointments
North West: This zone has Produced: Sanusi Garba (Chairman, retired June 2025 — Katsina State)
Current nominee: Abdullahi Ramat Garba (Kano State, not yet confirmed)
South South:Produced: Prof. James Momoh (Edo State), Ransom Owan (Cross River State)
South East: Dr. Sam Amadi (Imo State)
Those yet to produce Chairman are South West, North Central and North East.
Experts warn that disregarding these zones again could deepen political tensions and weaken the Commission’s legitimacy.
Statutory Tenure Requirements
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).
A close look at the status of Current Commissioners shows that Dr. Musiliu Oseni from (South West) Vice Chairman / Commissioner for Market, Competition & Rates , Serving second term; will complete 10 cumulative years and will expire by December 1, 2025
Also, Hajiya Aisha Mahmud (North West), Commissioner for Consumer Affairs, Serving first term; expires December, 2025. Expiring February 2026 is Nathan Rogers Shatti (North East) ,Commissioner, Finance & Management — second and final term, Dafe Akpeneye (South South), Commissioner, Legal, Licensing & Compliance — second and final term, Dr. Yusuf Ali (North Central) , Commissioner, Planning, Research & Strategy — first term and Engr. Chidi Ike (South East), Commissioner, Engineering, Performance & Monitoring — first term
Will the System Collapse?
With multiple terms ending within months of one another, and with no acting mechanism to keep the regulatory system running, analysts warn that Nigeria may experience a total regulatory shutdown, endangering electricity market operations, tariff reviews, licensing, consumer protection, and market settlement.
They stress that only urgent, merit-based, regionally balanced appointments — consistent with the Electricity Act — can prevent further disarray.
Interestingly, getting Nigeria’s power regulatory system right is crucial for several reasons:
One is Improved Electricity Supply: A well-functioning regulatory system ensures that electricity is generated, transmitted, and distributed efficiently, leading to a more reliable power supply.
Increased Investment: A transparent and predictable regulatory framework attracts investors, both local and foreign, to the power sector, leading to increased investment and improved infrastructure.
Affordable Tariffs: A regulatory system that balances the interests of generators, distributors, and consumers helps ensure that tariffs are fair and affordable, benefiting households and businesses.
Private Sector Participation: A robust regulatory framework encourages private sector participation, bringing in expertise, efficiency, and innovation to the power sector.
Economic Growth: A reliable power supply is essential for economic growth, as it enables businesses to operate efficiently, creates jobs, and increases productivity and Social Development: Access to electricity improves living standards, healthcare, education, and overall well-being, contributing to social development.
Energy Security: A well-regulated power sector ensures energy security, reducing reliance on expensive and polluting generators, and promoting energy independence.Transparency and Accountability: A strong regulatory system promotes transparency and accountability, reducing corruption and ensuring that the sector operates in the best interests of Nigerians.
Renewable Energy Integration: A supportive regulatory framework encourages the integration of renewable energy sources, promoting sustainable energy development and reducing dependence on fossil fuels.
Regional Integration: A well-regulated power sector enables Nigeria to participate in regional power markets, promoting economic cooperation and energy security in West Africa.
However, by getting the regulatory system right, Nigeria can unlock the full potential of its power sector, driving economic growth, social development, and energy security.
