NERC Launches Electricity Regulators Forum Amid Ongoing Power Supply Crisis
NERC Strengthens Coordination with New Regulators Forum Amid Energy Challenges
The Nigerian Electricity Regulatory Commission (NERC) has inaugurated the Forum of Nigerian Electricity Regulators (FONER) to strengthen coordination across the country’s electricity market, amid persistent power supply challenges.
The forum was launched on March 25, 2026, during the first quarter regulatory meeting with State Electricity Regulators in Lagos, as part of efforts to improve regulatory alignment and sector performance.
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Addressing Fragmentation in a Multi-Level Market
The creation of FONER comes as Nigeria transitions to a decentralised electricity market following the implementation of the Electricity Act 2023, which allows states to regulate their own power markets.
NERC stated that the forum will serve as a platform for collaboration between federal and state regulators, helping to harmonise tariff structures, licensing processes, market operations, and consumer protection standards.
According to NERC Chairman, Musiliu Oseni, the initiative is designed to prevent regulatory arbitrage, where operators exploit inconsistencies between jurisdictions. He emphasised that coordinated oversight is essential to ensuring a stable and efficient electricity market.
Launched Amid Worsening Power Supply Conditions
The inauguration of the forum comes at a time of declining electricity generation and widespread outages across Nigeria.
Recent disruptions have been linked to persistent gas supply shortages, which continue to constrain generation capacity and reduce grid stability.
Nigeria’s broader electricity challenges remain structural, with issues spanning generation, transmission, and distribution. Limited infrastructure capacity and operational inefficiencies have contributed to unreliable supply, affecting households and industrial productivity.
Mandate and Strategic Objectives
FONER is expected to play a central role in advancing electricity sector reforms by:
Promoting dialogue and peer learning among regulators
Establishing uniform regulatory standards nationwide
Supporting capacity building across state-level institutions
Serving as a consultative platform for policy and market reforms
The forum will also focus on improving transparency, accountability, and investor confidence in Nigeria’s electricity market.
Leadership of the forum includes Musiliu Oseni as Chairman, alongside representatives from state regulatory bodies, reflecting the multi-tier governance structure emerging in the sector.
Implications for Power Sector Reform
The establishment of FONER signals a shift toward more coordinated regulation in Nigeria’s evolving electricity market.
As states increasingly assume regulatory authority, consistent standards and effective collaboration will be critical to avoiding fragmentation and ensuring efficient market operations.
For investors, improved regulatory clarity could enhance confidence and support capital inflows into generation, transmission, and distribution infrastructure.
Outlook
NERC’s move to institutionalise coordination among electricity regulators represents a key step in addressing long-standing inefficiencies in the sector.
However, resolving Nigeria’s power supply crisis will require sustained improvements in gas supply, infrastructure investment, and operational efficiency. The effectiveness of FONER will depend on its ability to translate regulatory alignment into measurable improvements in electricity availability and reliability.
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