Electricity Commission Faces Uncertainty as Key Leaders' Tenure Ends Dec 1

Nigeria's developing energy sector faces the possibility of regulatory loopholes due to political maneuvering that could hinder effectiv...

Nigeria's developing energy sector faces the possibility of regulatory loopholes due to political maneuvering that could hinder effective management at the Nigerian Electricity Regulatory Commission (NERC), unless prompt measures are implemented.

LEADERSHIP states that the leadership gap is expected to increase by December 1, when the term of the vice chairman, current acting chairman, and certain commissioners within the agency will end.

Individuals involved in the discussion voiced worries that this could lead to more significant challenges for the industry as it moves toward establishing a regulatory commission at the state level.

So far, the federal government and investors in the Nigerian Electricity Supply Industry (NESI) have differed on whether state governments are currently capable of regulating and managing electricity markets within their areas effectively.

However, discussing his views on the vacancy in the NERC leadership, Adetayo Adegbemle, the chairperson of PowerUp Nigeria, told our reporter, "The name of the NERC Chairman nominee has been submitted to the Senate Committee on Power for more than 14 days."

We remain unaware of any updates regarding whether the nominee will receive approval. Multiple nominations have been forwarded to the Senate and have been approved since the NERC Chairman Nominee's name was submitted. This lack of clarity is not favorable for the stability of the power industry.

As per Adegbemle, "the federal government is not providing support, we can't have an unstable leadership at the Ministry, and now introduce further instability at the regulatory level, emphasizing, 'This is detrimental to the power sector.'"

He voiced concerns that Nigeria's energy regulatory system is encountering an extraordinary crisis, with the potential for collapse resulting from prolonged ineffective leadership and appointments driven by political interests.

Industry experts noted that, over the past 20 years, appointments to leadership positions within the Nigerian Electricity Regulatory Commission (NERC) have increasingly favored political considerations over technical expertise, a pattern that analysts warn poses significant risks for a sector crucial to Nigeria's economic stability.

Our reporter states that by December 1, 2025, the roles of both the chairman and vice chairman, along with some commissioners at NERC, will be open, and the Electricity Act does not include provisions for an Acting Chairman when both positions are vacant.

This implies that the Commission will legally have no leadership at all unless the President quickly appoints a new group of qualified commissioners.

LEADERSHIP results indicate that individuals whose terms will conclude by 1 December 2025 include Dr Musiliu Oseni (South West), vice chairman/commissioner for Market, Competition & Rates, and Hajiya Aisha Mahmud (North West), commissioner for Consumer Affairs. Those whose terms are set to end in February 2026 comprise Nathan Rogers Shatti (North East), commissioner for Finance & Management—second and final term; Dafe Akpeneye (South South), commissioner for Legal, Licensing & Compliance—second and final term; Dr. Yusuf Ali (North Central), commissioner for Planning, Research & Strategy, currently in his first term; and Engr. Chidi Ike (South East), commissioner for Engineering, Performance & Monitoring, also serving his first term.

At an event in Abuja celebrating the 20th anniversary of the Nigerian Electricity Regulatory Commission (NERC), Power Minister Chief Adebayo Adelabu stated that transferring regulatory authority to states could enhance electricity supply and increase efficiency within the industry.

Led by the director of Distribution, Umar Mustapha, the minister stated that the Electricity Act allows states to utilize local resources to fulfill their energy requirements.

"The legislation enables states to assume control over their future. They have the ability to utilize specific resources—such as solar, hydro, or wind—to develop grids that align with their economic and social goals," Adelabu stated.

He warned against quick changes to the Act, advising interested parties to wait until it is fully implemented before considering modifications.

"The federal government has established the policy framework; states now have the freedom to take action, while the private sector contributes capital and creativity. We should allow the model to develop further before considering additional changes," he added.

Nevertheless, some operators held a different view. Kola Adesina, the group managing director of Sahara Power Group, stated that most states are not equipped to handle electricity markets efficiently.

"The states lack the resources needed to develop electricity infrastructure. When inefficiency is decentralized, it merely distributes the issue. There needs to be coordination between policy and regulation," Adesina stated.

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