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Experts Doubt Electricity Act Will Solve Tariff Issues

9/23/2025

28 3 Full Breakdown

Summary

Story summary

Experts warn the Electricity Act may not resolve core issues as states resist higher tariffs.
Most states lack manpower and expertise to operate an independent electricity market.
Only 12 states have gained regulatory autonomy since the Act’s signing, yet face operational hurdles.
Legal overlaps between the Nigerian Electricity Regulatory Commission (NERC) and state regulators could hinder reforms.

History

Historical Context

The Nigerian Electricity Act of 2005 aimed to reform the power sector, transitioning from the National Electric Power Authority (NEPA) to the Power Holding Company of Nigeria (PHCN). Despite these efforts, only 12 of 36 states achieved regulatory independence, and the Nigerian Electricity Regulatory Commission (NERC) faces governance challenges. This ongoing energy crisis, affecting 85% of the population, hampers economic growth and development.

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Story summary

Experts warn the Electricity Act may not resolve core issues as states resist higher tariffs.
Most states lack manpower and expertise to operate an independent electricity market.
Only 12 states have gained regulatory autonomy since the Act’s signing, yet face operational hurdles.
Legal overlaps between the Nigerian Electricity Regulatory Commission (NERC) and state regulators could hinder reforms.

1 / 2