Nigerian Electricity Regulatory Commission

An Act establishes the Nigerian Electricity Regulatory Commission to regulate the electricity supply industry and ensure fair pricing. It targets electricity providers, consumers, and government agencies. This promotes a competitive and reliable electricity market.

What Is This Policy?

An overview of the Nigerian Electricity Regulatory Commission (NERC), the independent regulatory body established under the EPSRA 2005 to regulate and oversee the Nigerian electricity supply industry, ensuring fair pricing, service quality, and a competitive market.

Who Does It Target?

All electricity industry participants and licensees Electricity consumers Federal and state government agencies Energy sector investors

What Does It Aim to Achieve?

Ensure a reliable, affordable, and sustainable electricity supply in Nigeria by independently regulating tariffs, licensing participants, enforcing service standards, and promoting competition in the electricity market.

Key Features

Tariff Regulation: Setting and reviewing electricity tariffs through multi-year tariff orders Licensing: Issuing and managing licenses for generation, transmission, distribution, and trading Consumer Protection: Handling complaints, enforcing service quality standards, and protecting consumer rights Market Oversight: Monitoring the electricity market for anti-competitive behaviour and inefficiency Technical Standards: Setting and enforcing technical codes, grid code, and metering standards

Current Status

Rollout Stage: Fully operational since 2005 Coverage: Entire Nigerian electricity supply industry Governance: Commission headed by a Chairman and Commissioners appointed by the President Funding: Operating fees from licensees and government appropriations

How to Access

NERC is accessible to consumers and industry participants. File complaints through the NERC forum offices, website, or hotline Licensees engage with NERC through prescribed regulatory processes Public consultations are held before major regulatory decisions

Official Resources

Website: nerc.gov.ng Contact: NERC Headquarters, Abuja

Legal Framework

The Nigerian Electricity Regulatory Commission (Establishment) Act establishes NERC as the independent electricity regulator. It has been subsumed into the Electricity Act 2023, which now provides the comprehensive statutory basis for NERC's mandate. The Electricity Act 2023 operates under the 1999 Constitution (Item 14 of the Exclusive Legislative List on electricity — as amended by the Fifth Alteration to allow state participation) and aligns with the ECOWAS Regional Electricity Market Protocol and the World Bank ESMAP regulatory best practices.