FG warns power sector players against actions threatening electricity market decentralisation

Minister of Power, Chief Joseph Tegbe, has cautioned stakeholders in the Nigerian Electricity Supply Industry NESI against regulatory actions that could destabilise the country’s decentralised electricity market. This was contained in a press statement issued by the Nigerian Electricity Regulatory Commission NERC.

The minister spoke at a workshop on Legal, Policy and Regulatory Harmonisation between Federal and State Institutions on the Decentralisation of NESI, held in Abuja.

Chief Tegbe outlined the evolving structure of the sector, noting that while the Federal Government retains a key leadership role, state governments now carry expanded responsibilities. NERC continues to regulate matters within its remit, even as new state-level regulators emerge to oversee their own markets.

He described a web of interdependence across the industry — transmission infrastructure remaining a national asset, distribution companies serving millions of customers, generation firms feeding the grid, and private investors and development partners supplying capital and technical expertise. Consumers, he stressed, remain central to every decision made in the sector.

Calling for unity among the various players, the minister said no single institution operates in isolation, insisting that “collaboration must become the defining principle of our decentralised electricity market.” He urged industry actors to prioritise cooperation over rivalry, alignment over conflict, and mutual respect over jurisdictional disputes.

Chief Tegbe further clarified that the Electricity Act was not designed to create competing power industries, but rather complementary markets functioning under a single national framework.

He said the ultimate goal must be regulatory coherence — one in which investors are not confronted with conflicting rules, developers do not face contradictory approval processes, and consumers are not left vulnerable to institutional uncertainty. Market participants, he added, deserve clarity, predictability and confidence regardless of where they choose to invest.