The Nigeria Governors’ Forum says it is developing a uniform electricity tariff methodology to guide pricing across states and address inconsistencies arising from the decentralisation of electricity regulation.
The forum disclosed this at the ongoing Lagos Energy Summit, where its representative, Chijioke Chukwu, said the proposed framework would help states navigate the complexities of tariff determination and promote greater consistency in electricity pricing.
Chukwu explained that the initiative followed challenges faced by some states in setting electricity tariffs under the decentralised regulatory framework.
“We’re currently working on a uniform tariff methodology that will also help states really get to the point of getting their tariffs out,” he said.
He added that the framework is expected to be completed by the first quarter of next year.
Chukwu explained that the decentralisation of electricity regulation had created the need for common minimum standards to guide the operations of state electricity markets.
He noted that the shift from a centralised regulatory system to multiple state regulators could lead to disparities in electricity tariffs, licensing requirements and technical standards without proper coordination among the states.
He disclosed that the forum had also developed a model electricity law, based on the Electricity Act, to provide guidance for states in establishing their respective regulatory frameworks.
He, however, clarified that the model law was not intended for automatic adoption by states but would serve as a guide that could be adapted to their specific needs and circumstances.
Chukwu said some states had faced challenges in developing and enacting their electricity laws due to limited technical expertise and capacity to interpret the regulatory requirements.
He added that, beyond the model legislation, the NGF was developing public-private partnership guidelines, integrated resource plans, service-level agreements and other regulatory instruments to support the development of functional electricity markets across states.
The initiative comes amid concerns over regulatory enforcement gaps and fragmentation in Nigeria’s electricity sector.
A member of the Presidential Task Force on Power Sector Reset and Restoration, Engr. Uzoma Achinanya, warned that weak regulatory monitoring and enforcement had undermined discipline in the electricity industry.
He stressed that introducing additional regulations would not resolve the sector’s challenges unless existing rules were effectively monitored and enforced.
“And regulation without monitoring and enforcement is no regulation; you can write all the laws, all the regulations. In Nigeria, regulation is more than the height of this building, but no monitoring and no enforcement. That is why nobody is doing it,” he said.
Achinanya also identified poor payment discipline as a major obstacle to sustainable electricity supply, noting that gas suppliers and power generation companies could not continue providing services without adequate and timely payments.
