The Federal Competition and Consumer Protection Commission has warned that Nigeria’s emerging state electricity markets could face investment challenges if different regulatory standards are adopted across the country.

The commission called for stronger collaboration between federal and state electricity regulators, saying a harmonised consumer protection framework is necessary to safeguard electricity users and provide certainty for investors under the Electricity Act 2023.

Speaking on Thursday at a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector in Abuja, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, said consumers should receive equal protection irrespective of where they reside.

The meeting was attended by officials of the Nigerian Electricity Regulatory Commission, the Nigerian Electricity Management Services Agency and state electricity regulatory commissions following the emergence of sub-national electricity markets under the Electricity Act 2023.

Bello described the legislation as a landmark reform that has transformed Nigeria’s electricity regulatory landscape by allowing states to establish independent electricity regulatory commissions.

He, however, stressed that the reforms would only achieve their objectives if regulators worked together.

He stated: “The Electricity Act of 2023 represents one of the most significant reforms of Nigeria’s electricity sector in recent years. Beyond creating new opportunities for investment and improved service delivery, it has fundamentally reshaped our regulatory architecture.”

“For the first time, states may establish their own electricity regulatory commissions and regulate intrastate electricity markets in ways that reflect their individual economic and social realities. This creates greater scope for innovation, quicker decision-making, and more responsive regulation. At the same time, it makes cooperation between our institutions more important than ever.”

He noted that electricity consumers were primarily concerned with reliable service and fair treatment, rather than which regulatory body had jurisdiction over their complaints.

He added: “The success of this framework will depend not only on the effectiveness of each regulator, but also on how well we work together. Consumers experience electricity as one system. When supply is interrupted, or a bill appears incorrect, they are not concerned about which regulator has jurisdiction.”

“They simply expect protection, ensuring that our institutions work seamlessly together in our responsibility and not theirs.”

Bello explained that while NERC regulates the electricity industry, NEMSA enforces technical standards, state regulators supervise intrastate electricity markets and the FCCPC provides economy-wide consumer protection and competition oversight.

According to him, the responsibilities of the various agencies are complementary and should be coordinated.

“These responsibilities are different, but they are complementary. Our objective is to consult, exchange information, support one another’s lawful actions, and ensure consumers receive timely and effective protection.”

He cited the suspension of the proposed replacement of obsolete Unistar prepaid meters shortly after he assumed office in July 2024 as an example of successful collaboration among regulators.

Bello said the FCCPC convened a meeting involving NERC, NEMSA and electricity distribution companies after concerns emerged that consumers might bear the cost of replacing obsolete meters or be subjected to estimated billing.

“Following deliberations, the replacement exercise was suspended, pending compliance with applicable regulatory requirements, a position that was endorsed by both NERC and NEMSA.”

“The eventual resolution reflected the requirements of NERC’s order on the structured replacement of faulty and obsolete end-user consumer meters,” he noted.

He added that the final resolution ensured consumers would not pay for replacing obsolete meters.

He said: “The order guaranteed that consumers would not bear the cost of replacing obsolete meters, would not experience interruption of electricity supply during the replacement exercise, and would not be subjected to estimated billing because of delays in implementation.”

“Those safeguards reflected the principle that consumers should never be disadvantaged because infrastructure has reached the end of its useful life through no fault of their own.”

Bello maintained that the ultimate goal of regulation should be preventing consumer harm rather than merely resolving complaints after they occur.

He stated: “Success should therefore be measured not only by the number of complaints resolved, but also by the number of complaints prevented.”

He urged regulators to prioritise collaboration over institutional rivalry.

He added: “Strong regulation is not built on institutional rivalry. It is built on cooperation, mutual respect, and a shared commitment to the public interest.”

He further stressed that coordinated regulation would become even more important as more states establish their own electricity markets.

He said: “Our success should not be judged by how firmly we protect our individual jurisdictions but by how effectively we work together and how we protect electricity consumers.”

“Wherever an electricity consumer lives in Nigeria, they should have the same confidence that they will be treated fairly, their complaints will be resolved effectively, and lawful regulatory decisions will be respected.”

Also speaking, the Assistant Director and Head of Consumer Protection Department at NERC, Anthony Essien, said harmonised regulations were vital to maintaining investor confidence.

He said: “The Electricity Act 2023 established state and regional electricity markets across the country. Having a convergence like this is very paramount to foster collaboration and coordinated efforts towards serving the different electricity markets that have been created, especially considering customer protection.”

“It would not be easy, especially looking at investors coming in and having different standards across 36 states. But if we come together and foster a unified and well-thought-out effort to bring forward laws, it would further strengthen our mandates across the different states.”

Essien noted that the FCCPC had become an important partner in NERC’s consumer complaints mechanism and now participates in the commission’s Consumer Complaints Forum.

The Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as timely, saying it would enable state regulators to benefit from the experience of federal agencies.

Okonkwo stated: “This collaborative arrangement puts us in a position to share ideas, take advantage of what could also come from the federal government and implement it within our state for the ultimate protection of our citizens.”

“Wherever we have gaps or challenges, we could come together to resolve them for the benefit of all, because we are all new in this sector and are trying to develop something that has never been done anywhere else in the world.”

Similarly, the Chairman of the Anambra State Electricity Regulatory Commission, Prof Frank Nwoye Okafor, warned that inconsistent regulations across states could create uncertainty for investors.

Okafor noted: “The reforms brought about by the Electricity Act 2023 were a step in the right direction. But when you have regulatory fragmentation, sometimes it creates a coordination problem.”

“The biggest nightmare for an investor is trying to figure out 36 different rules. But if we have this sort of coordination, then we start singing from the same hymn sheet.”

The Electricity Act 2023 ended decades of exclusive federal control of Nigeria’s electricity sector by empowering states to establish and regulate their own electricity markets after meeting constitutional and regulatory requirements.

Since the law came into effect, 16 states, including Lagos, Enugu, Plateau and Anambra, have established electricity regulatory commissions.

While the reforms are expected to attract investment and improve power supply, stakeholders have repeatedly cautioned that inconsistent regulations across states could create compliance challenges for investors and weaken consumer protection.