The Federal Government yesterday announced its stoppage of the issuance of electricity regulatory autonomy to state governments as it commenced a review of the policy.
Power Minister Adebayo Adelabu said it appeared the state governments and other stakeholders had no clear idea yet of what it takes to operate an electricity market.
The Federal Government had, in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023, issued an order to transfer regulatory oversight of the electricity market in Ondo, Ekiti and Enugu states from the Nigerian Electricity Regulatory Commission (NERC) to the state electricity regulatory bureaux.
But Adelabu said there was now a need for a fresh look at the policy to enable the states and other regulators understand what is required to operate an electricity market.
He spoke at the 8th edition of the Africa Energy Market Place (AEMP) conference in Abuja.
The minister said adequate understanding of the transfer of regulatory oversight of the electricity market to states is crucial for the survival and sustainability of the nation’s power sector.
He stressed the need for everyone in the sector to tread carefully.
“We must tread carefully. We should not be in a hurry. The market is not a mature market; it is not mature enough,” he said.
“With everything centralised for a single regulator, we have a myriad of issues. Now we tend to create a regulatory framework across 36 states, it is something that we must do "