Towards Improved Electricity Access – Scrutinising Nigeria’s Energy Regulatory Framework

Sarah Wolters

Low electrification worsens socio-economic inequalities and hinders industrial development. In this context, the Nigerian government committed to universal electricity access by 2030.

However, setting ambitious goals is not enough. To tackle the issue of low electrification rates, a stable policy and a reliable legal framework are key elements to support energy technology development especially because of the high investments required.

In Nigeria, the energy law shows supporting elements as well as barriers to wider electricity access.

The unclear allocation of roles regarding legislative competencies is one of the elements that potentially hinders wider electricity access. This circumstance causes confusion as the Electric Power Sector Reform Act (EPSRA) – imposed at federal level – supports regulations beyond the main electricity grid instead of cooperation with the state governments. Moreover, the Nigerian Electricity Regulatory Commission (NERC) regulates more than what is stated in the EPSRA, which raises questions regarding the legal force of the regulations declared by the NERC. These confusions might slow down the improvement of electricity access and need to be clarified.

Furthermore, the Eligible Customer Regulations (ECR) created by the NERC contain good basic rules in section 37, but they are not enough to reach the goals stated in the ECR itself. These good basic rules are found in the definition of some rights and obligations of the suppliers, grid operators and customers. For example, there are regulations about a supplier of last resort who supplies a customer concerned in case the contracted supplier fails. However, the ECR does not contain enough elements for the promotion of a rapid expansion of electricity supply and the improvement of financial liquidity of the electricity industry although both aspects are stated as objectives in the ECR.


READ MORE: https://www.dataphyte.com/latest-reports/energy/electricity/towards-improved-electricity-access-scrutinising-nigerias-energy-regulatory-framework/


Sarah is a Placement Research Fellow with Dataphyte From the University of Edinburgh



cc: lalasticlala, seun, onila, farano, mynd44, prettythicksme

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Towards Improved Electricity Access – Scrutinising Nigeria’s Energy Regulatory Framework

Sarah Wolters

Low electrification worsens socio-economic inequalities and hinders industrial development. In this context, the Nigerian government committed to universal electricity access by 2030.

However, setting ambitious goals is not enough. To tackle the issue of low electrification rates, a stable policy and a reliable legal framework are key elements to support energy technology development especially because of the high investments required.

In Nigeria, the energy law shows supporting elements as well as barriers to wider electricity access.

The unclear allocation of roles regarding legislative competencies is one of the elements that potentially hinders wider electricity access. This circumstance causes confusion as the Electric Power Sector Reform Act (EPSRA) – imposed at federal level – supports regulations beyond the main electricity grid instead of cooperation with the state governments. Moreover, the Nigerian Electricity Regulatory Commission (NERC) regulates more than what is stated in the EPSRA, which raises questions regarding the legal force of the regulations declared by the NERC. These confusions might slow down the improvement of electricity access and need to be clarified.

Furthermore, the Eligible Customer Regulations (ECR) created by the NERC contain good basic rules in section 37, but they are not enough to reach the goals stated in the ECR itself. These good basic rules are found in the definition of some rights and obligations of the suppliers, grid operators and customers. For example, there are regulations about a supplier of last resort who supplies a customer concerned in case the contracted supplier fails. However, the ECR does not contain enough elements for the promotion of a rapid expansion of electricity supply and the improvement of financial liquidity of the electricity industry although both aspects are stated as objectives in the ECR.


READ MORE: https://www.dataphyte.com/latest-reports/energy/electricity/towards-improved-electricity-access-scrutinising-nigerias-energy-regulatory-framework/


Sarah is a Placement Research Fellow with Dataphyte From the University of Edinburgh



cc: lalasticlala, seun, onila, farano, mynd44, prettythicksme

Shameless nation, with all the options of renewable energy available? For lack of vision, the people remain in darkness.