Nigeria’s Electricity Reform: Harmonised Regulation and Grid Audit Mandates Signal New Era
The federal government and the National Assembly are reinforcing their commitment to a unified Nigerian electricity market, underscoring the critical need for seamless collaboration between federal and state electricity regulators. This strategic alignment is paramount as Nigeria navigates the transition towards a decentralised electricity supply industry. Complementing these policy directives, the Nigerian Electricity Regulatory Commission (NERC) has unveiled new guidelines for the periodic technical auditing of the national transmission network, a move designed to bolster reliability and efficiency.
These pivotal commitments were articulated at a recent workshop in Abuja focused on “Legal, Policy and Regulatory Harmonisation Between Federal and State Institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI).” Participants unanimously stressed that effective coordination among regulatory bodies is indispensable for sustaining a cohesive and functional electricity market. Mr. Rilwan Lanre Babalola, Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, highlighted electricity’s foundational role in industrialisation, economic competitiveness, and national prosperity. He urged stakeholders to view the ongoing reforms as a collaborative endeavour towards a single Nigerian electricity market, rather than a contest for regulatory authority. Babalola emphasised that while the Electricity Act decentralises governance aspects, the interconnected nature of the physical grid and the interdependence of markets necessitate harmonised regulatory approaches.
Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, affirmed the legislature’s dedication to supporting legal frameworks that facilitate complementary functions between federal and state regulators. He posited that the success of decentralisation should be measured by the achievement of a coherent, efficient, bankable, and integrated electricity market, where federal and state institutions work in concert. This necessitates harmonised rules governing the interrelationships between NERC and State Electricity Regulatory Commissions. The Minister of Power, Chief Joseph Tegbe, and NERC Chairman, Dr. Musiliu Oseni, echoed these sentiments, stressing the imperative of harmonising regulatory and operational activities across the Nigerian Electricity Market.
In line with these objectives, NERC has issued the Guidelines on the Procedures for Technical Audit of the Transmission System and Network Data Validation 2026, effective July 20, 2026. These guidelines establish a transparent, uniform, and standardised framework for conducting technical audits of Nigeria’s transmission system and validating network data. The aim is to enhance the reliability, safety, security, and operational efficiency of the national grid. Under the new framework, the Nigerian Independent System Operator (NISO) is mandated to engage qualified consultants for comprehensive technical audits of the 330kV and 132kV transmission networks at least once every five years. Transmission Service Providers (TSPs) must grant auditors full access to facilities and records, and are required to develop and implement performance improvement plans based on audit findings, submitting annual progress reports to NERC. The guidelines also delineate minimum competency requirements, scope of work, and methodologies for audit consultants. NERC urges all stakeholders to familiarise themselves with and ensure full compliance with these guidelines to foster a more robust electricity transmission system.
