What FONER’s inauguration means for power sector regulations

On Wednesday, March 25, the Nigerian Electricity Regulatory Commission (NERC) inaugurated the Forum of Nigeria’s Electricity Regulators (FONER) to facilitate coordination and effectiveness in electricity regulation.

The inauguration seeks to promote regulatory alignment between the states and the NERC in accordance with the unbundling of the electricity sector under the Nigerian Electricity Act, 2023, as amended, which has given states regulatory responsibilities in the electricity reforms.

The ICIR reports that the forum is also meant to address regulatory conflicts that could arise from tariff resets and complications of state regulatory responsibilities.

It should be noted that NERC previously rejected the Enugu Electricity Regulatory Commission (EERC) over its controversial Multi-Year Tariff Order, which reduced the tariff for Band A to N160.4 per kilowatt-hour from N209, effective from August 1, 2025.

NERC’s intervention comes amid the confusion in the country’s electricity industry after EERC announced a tariff drop mandating MainPower, Enugu Distribution Company, to comply.

Analysts say that EERC’s action generated controversies that needed constant check through seamless harmonisation of regulatory procedures between states and NERC.

NERC Chairman, Musiliu Oseni, who spoke at the inauguration and the first-quarter 2026 regulatory meeting with State Electricity Regulators (SERs), described the initiative as a major step in Nigeria’s transition to a multi-level electricity market.

He stressed that the initiative was aimed at enhancing coordination and effectiveness in electricity regulation across Nigeria.

He described the initiative as a major step in Nigeria’s transition to a multi-level electricity market and emphasised the need for collaboration to prevent regulatory loopholes within the sector.

“We must work collaboratively to avoid regulatory arbitrage by operators. I charge all of us to carry out this mandate with the utmost responsibility. Pursuant to Section 230(9) of the Electricity Act 2023, I hereby declare the Forum of Nigerian Electricity Regulators duly inaugurated,” he said.

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FONERS’ focus and experts’ concerns

FONER is expected to drive key regulatory objectives, including fostering dialogue between NERC and SERs, promoting harmonised approaches in tariff setting, market operations, and consumer protection, and supporting capacity-building through peer learning.

The forum will also serve as a consultative platform for electricity market reforms while advancing transparency, accountability, and national regulatory benchmarks.

A power sector governance expert, Kunle Kola Olubiyo, told The ICIR that the forum would ensure states address issues regarding conflicts of interest in the sector.

“We had issues recently, whereby Enugu State Regulatory Commission had a conflict of interest with NERC on the tariff to Enugu electricity consumers.

“The forum is focused on creating harmony and seamless corroboration in cost of electricity and tariff-related issues and overall progress of the sector,” Olubiyo said.

He stressed the importance of alignment of technical experience and expertise of appointees of states regulatory commission on improving the sector.

NERC’s Chairman, Musiliu Oseni, Chijioke Okonkwo of the Enugu State Electricity Regulatory Commission, and Aisha Mahmud are members of the FONER.

Oseni serves as chairman of FONER, while serves as vice chairman, and Mahmud is secretary.

 

 

Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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