By Daniel Oluwatobiloba Popoola
The Federal Competition and Consumer Protection Commission (FCCPC) has warned that electricity investors could face uncertainty if Nigeria’s emerging state electricity markets operate under different regulatory standards, calling for a harmonised consumer protection framework across the country.
The warning was issued on Thursday, 30 July, 2026 by the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, at a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector, held at the commission’s headquarters in Abuja.
The event brought together officials of the Nigerian Electricity Regulatory Commission, the Nigerian Electricity Management Services Agency and state electricity regulatory commissions, following the establishment of sub-national electricity markets under the Electricity Act 2023.
The commission urged closer collaboration among federal and state electricity regulators, warning that fragmented regulation could weaken consumer protection and discourage investment as the country continued implementing the Act.
Bello described the legislation as one of the most significant reforms in Nigeria’s electricity sector, explaining that it had reshaped the country’s regulatory framework by empowering states to establish independent electricity regulatory commissions.
He, however, cautioned that the success of the reforms would depend on institutional collaboration rather than competition among regulators, noting that consumers experienced electricity as one system and were not concerned about jurisdictional boundaries when supply was interrupted or a bill appeared incorrect.
He explained that while NERC regulates the electricity sector, NEMSA enforces technical standards, state regulators oversee intrastate electricity markets, and the FCCPC provides economy-wide consumer protection and competition oversight, stressing that the agencies’ responsibilities were complementary and should be coordinated to ensure effective consumer protection.
Bello cited the suspension of the proposed replacement of obsolete Unistar prepaid meters in 2024 as an example of successful regulatory collaboration, explaining that the FCCPC had worked with NERC, NEMSA and electricity distribution companies to suspend the exercise pending compliance with regulatory requirements.
He noted that the resulting 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 due to implementation delays.
He urged regulators to avoid institutional rivalry, stressing that consumers across Nigeria should enjoy the same level of protection regardless of location.
Also speaking, the Assistant Director and Head of Consumer Protection Department at NERC, Anthony Essien, said the decentralisation of Nigeria’s electricity market had made collaboration among regulators indispensable, warning that investors could face challenges if states operated different regulatory standards.
He explained that it would not be easy for investors to navigate different standards across 36 states, but noted that a unified and well-coordinated effort to develop laws would further strengthen regulatory mandates across the states.
Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as timely, saying it would enable state regulators to share ideas and address emerging challenges collectively.
Similarly, the Chairman of the Anambra State Electricity Regulatory Commission, Prof. Frank Nwoye Okafor, said regulatory coordination would reduce uncertainty for investors operating across multiple states, explaining that the biggest challenge for an investor was navigating 36 different sets of rules, and that proper coordination would ensure regulators operated from the same standard.
The Electricity Act 2023 ended decades of exclusive federal control of Nigeria’s electricity market by empowering states to establish and regulate their own electricity markets after receiving constitutional and regulatory approvals.
The reforms have led to the creation of 16 state electricity regulatory commissions, though industry stakeholders have warned that inconsistent regulations across states could create compliance burdens for investors and weaken consumer protection, underscoring the need for stronger coordination among regulators.
