Opinion
Beyond Legal Reform On Power Sector (1)
Following the recent constitutional amendment assented to by President Muhammadu Buhari, the power sector regulatory body- the Nigerian Electricity Regulatory Commission (NERC) now has powers to grant States license to generate, transmit and distribute electricity. Prior to the review, the 1999 Constitution of the Federal Republic of Nigeria (as ammended) in Articles 13 and 14 though positioned electric power in the concurrent legislative list for federal and state governments to legislate on electricity matters, however, restrained the powers. The states then were only permitted to interfere in areas not covered by the national grid system within that state. Interestingly, the recent amendment reviewed Article 14(b) and liberally expands the powers of states to generate, transmit and distribute electricity to areas covered by the national grid unlike pre-reform regimes. What then are the implications of the powers extended to the states to generate electricity even in areas covered by the national grid?
For decades and even with the privatisation of the sector in 2013, the electricity value chain, especially transmission and distribution are literally monopolistic. The reason for this is that even when the electricity value chain has been unbundled and components privatised, the value chain remains highly integrated due to the nature of the electricity product. Electricity in the form of electrons travels at the speed of light from generation to consumption points. Without integration, the disruptions due to poor coordination between components of the value chain can result in poor delivery.
In developed utilities, competitiveness has been introduced through market and regulatory reforms which facilitate consumers to select their preferred generators depending on tariff differences. Advanced metering technology makes this possible. More recently technological innovations are creating opportunities for households and electricity consumers to explore self-generation options apart from public grid systems. The available options range from conventional generators, solar and wind generators. An important incentive for self-generation is that the deployed smart metering solutions facilitate the sale of excess self-generated power back to the grid.
The liberalisation of the states to generate, transmit and distribute electricity has subtly de-monopolised the long existing monopoly of the value chain, making way for free competition in the market through states. Possibly, some states will subsequently make investments in the power sector that will give rise to more electricity generation and supply. However, the question is, how much of additional generated power can be accommodated and integrated into the current Nigerian grid system?
Arguably, there may be a dire need for states to massively invest in further strengthening electricity network infrastructure which has been one of the major causes of the unstable poor supply in many parts of the country. There are privately-owned distribution infrastructure that have been in use for over four decades, hence, the need for upgrade. Equally, some government owned power generating plants which are yet to be concessioned and the Transmission Company of Nigeria (TCN) require significant capital outlay in order to upgrade the assets to the growing national power demand. Even if there was sufficient generated electricity, in most cases, those worn-out infrastructure may be incapable of accommodating such load. As such, we see excess generated electricity, unutilised. Modern technology has provided grid support and ways excess energy can be stored and utilised appropriately. This must be explored.
Given all these challenges and emerging opportunities, the most optimal way to leapfrog in the provision of improved reliable electricity, is for the state governments to consider how the potential investors would leverage on existing NERC regulations in third-party investments, franchising and eligible customer regulations before awarding investments in generation, transmission and distribution to new entrants. This way, legal hitches in utilising existing infrastructure which are privately owned can be avoided.
Depending on how the states intend to operate, the synergy between existing investors and new entrants would open up massive novel opportunities and would also see a rise of prosumers. This means producing consumers; if states allow individuals with capacity to generate their own power and distribute. This can be a good foundation to usher in clean renewable energy sources. In countries like the United Kingdom, innovative incentives (though limited in time) like feed in tariff, renewable obligation certificates were created to encourage generation of clean power through renewable sources by individuals, small and big companies alike. In fact, in the UK, some incentives like Contract for Difference, Smart Export Guarantee, Renewable Heat Incentises, etc. that encourage, support and incentivise the generation and distribution of clean energy through renewable sources are still operational.
Additionally, job creation and employment opportunities will also be a consequence of the implementation of the powers of the state. The underlying economic, social and financial advantages that would result from this are enormous. Thus, liberalising the states to generate, transmit and distribute electricity is a step in the right direction.
On the other hand, with all the positive impacts this recent amendment would likely bring to the sector, the future of existing GenCos, Transmission Company of Nigeria (TCN) and DisCos remain uncertain. With the previous monopolistic nature of the value chain, the sector battled liquidity crises, etc. Operating within an open market structure, leaves the fate of these market operators uncertain. States operating their own transmission networks may imply that the TCN which is the only body in the value chain that is 100 percent government owned and not privatised is now decentralised.
Furthermore, human capital flight may also be one of the setbacks that the current market operators may experience as states would source experienced and capable individuals to manage the state power investments. Declining collection efficiency may also be experienced especially where consumers are at liberty to switch from one electricity company to another. Consequently, the modalities for operations of the state with respect to generation, transmission and distribution of electricity must be clearly stated by NERC, the regulator. NERC may have more work to do in terms of providing innovative guidelines for customers to switch or migrate from one network to another and not just allow it to be solely an internal affair of the state.
According to the World Bank, “Nigeria has the largest number of people without access to electricity in the world”. The World Bank further states that “the power sector has not been able to keep up with demand or provide reliable supply to existing customers. Businesses in Nigeria lose about US$29 billion annually because of unreliable electricity”.
Optimistically, with the implementation of this reform by states, especially if renewable energy sources are incorporated, Nigeria may witness a record decline in the number of people without access to electricity as well as see significant improvement in electricity supply, and ultimately boost the economy. However, the success is dependent on implementing business models that would promote synergy and collaboration between the existing distribution investors and the new entrants to avoid potential rivalry that could lead to legal hitches.
Ani is a Lawyer & Renewable Energy Expert, and reachable through email: nkemani2011@yahoo.comBeyond Legal Reform on Power Sector.
By Ani Nkemjika Nnenne
Following the recent constitutional amendment assented to by President Muhammadu Buhari, the power sector regulatory body- the Nigerian Electricity Regulatory Commission (NERC) now has powers to grant States license to generate, transmit and distribute electricity. Prior to the review, the 1999 Constitution of the Federal Republic of Nigeria in Articles 13 and 14 though positioned electric power in the concurrent legislative list for federal and state governments to legislate on electricity matters, however, restrained the powers. The states then were only permitted to interfere in areas not covered by the national grid system within that state. Interestingly, the recent amendment reviewed Article 14(b) and liberally expands the powers of states to generate, transmit and distribute electricity to areas covered by the national grid unlike pre-reform regimes. What then are the implications of the powers extended to the states to generate electricity even in areas covered by the national grid?
For decades and even with the privatization of the sector in 2013, the electricity value chain, especially transmission and distribution are literally monopolistic. The reason for this is that even when the electricity value chain has been unbundled and components privatized, the value chain remains highly integrated due to the nature of the electricity product. Electricity in the form of electrons travels at the speed of light from generation to consumption points. Without integration, the disruptions due to poor coordination between components of the value chain can result in poor delivery.
In developed utilities, competitiveness has been introduced through market and regulatory reforms which facilitate consumers to select their preferred generators depending on tariff differences. Advanced metering technology makes this possible. More recently technological innovations are creating opportunities for households and electricity consumers to explore self-generation options apart from public grid systems. The available options range from conventional generators, solar and wind generators. An important incentive for self-generation is that the deployed smart metering solutions facilitate the sale of excess self-generated power back to the grid.
The liberalization of the states to generate, transmit and distribute electricity has subtly de-monopolized the long existing monopoly of the value chain making way for free competition in the market through states. Possibly, some states will subsequently make investments in the power sector that will give rise to more electricity generation and supply. However, the question is, how much of additional generated power can be accommodated and integrated into the current Nigerian grid system?
Arguably, there may be a dire need for states to massively invest in further strengthening electricity network infrastructure which has been one of the major causes of the unstable poor supply in many parts of the country. There are privately-owned distribution infrastructure that have been in use for over four decades, hence, the need for upgrade. Equally, some government owned power generating plants which are yet to be concessioned and the Transmission Company of Nigeria (TCN) require significant capital outlay in order to upgrade the assets to the growing national power demand. Even if there was sufficient generated electricity, in most cases, those worn-out infrastructures may be incapable of accommodating such load. As such we see excess generated electricity, unutilized. Modern technology has provided grid support and ways excess energy can be stored and utilized appropriately. This must be explored.
Given all these challenges and emerging opportunities, the most optimal way to leapfrog in the provision of improved reliable electricity, is for the state governments to consider how the potential investors would leverage on existing NERC regulations in third-party investments, franchising and eligible customer regulations before awarding investments in generation, transmission and distribution to new entrants. This way, legal hitches in utilizing existing infrastructure which are privately owned can be avoided.
Depending on how the states intend to operate, the synergy between existing investors and new entrants will open up massive novel opportunities and will also see a rise of prosumers. This means producing consumers; if states allow individuals with capacity to generate their own power and distribute. This can be a good foundation to usher in clean renewable energy sources. In countries like the United Kingdom, innovative incentives (though limited in time) like feed in tariff, renewable obligation certificates were created to encourage generation of clean power through renewable sources by individuals, small and big companies alike. In fact, in the UK, some incentives like Contract for Difference, Smart Export Guarantee, Renewable Heat Incentives, etc. that encourage, support and incentivize the generation and distribution of clean energy through renewable sources are still operational.
Additionally, job creation and employment opportunities will also be a consequence of the implementation of the powers of the state. The underlying economic, social and financial advantages that will result from this are enormous. Thus, liberalizing the states to generate, transmit and distribute electricity is a step in the right direction.
On the other hand, with all the positive impacts this recent amendment will likely bring to the sector, the future of existing GenCos, TCN and DisCos remain uncertain. With the previous monopolistic nature of the value chain, the sector battled liquidity crises, etc. Operating within an open market structure, leaves the fate of these market operators uncertain. States operating their own transmission networks may imply that the Transmission Company of Nigeria (TCN) which is the only body in the value chain that is 100% government owned and not privatized is now decentralized.
Furthermore, human capital flight may also be one of the setbacks that the current market operators may experience as states will source experienced and capable individuals to manage the state power investments. Declining collection efficiency may also be experienced especially where consumers are at liberty to switch from one electricity company to another. Consequently, the modalities for operations of the state with respect to generation, transmission and distribution of electricity must be clearly stated by NERC, the regulator. NERC may have more work to do in terms of providing innovative guidelines for customers to switch or migrate from one network to another and not just allow it to be solely an internal affair of the state.
According to the World Bank, “Nigeria has the largest number of people without access to electricity in the world”. The World Bank further states that “the power sector has not been able to keep up with demand or provide reliable supply to existing customers. Businesses in Nigeria lose about US$29 billion annually because of unreliable electricity”.
Optimistically, the implementation of this reform by states, especially if renewable energy sources are incorporated, Nigeria may witness a record decline in the number of people without access to electricity as well as see significant improvement in electricity supply, and ultimately boost the economy. However, the success is dependent on implementing business models that will promote synergy and collaboration between the existing distribution investors and the new entrants to avoid potential rivalry that can lead to legal hitches.
By: Ani Nkemjika Nnenne
Ani is a Lawyer & Renewable Energy Expert, and reachable through email: nkemani2011@yahoo.com
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
Quote:“.Across Abuja, Anambra, and Lagos, a common thread emerges: a disconnect between authority and empathy. Government actions may follow policy logic, but citizens respond from lived experience, fear, and frustration. When these realities collide without dialogue, the streets become the arena of engagement”
It was a turbulent week in the country, highlighting the widening gap between government intentions and public perception. From Abuja to Anambra and Lagos, citizens poured into the streets not just over specific grievances but in frustration with governance that often appears heavy-handed, confrontational, or insufficiently humane. While authorities may genuinely act in the public interest, their methods sometimes aggravate tensions rather than resolve them.
In Abuja, the strike by workers of the Federal Capital Territory Administration (FCTA) and the Federal Capital Development Authority (FCDA) under the Joint Union Action Committee (JUAC) brought the capital to a near standstill. Their demands included five months’ unpaid wages, hazard and rural allowances, promotion arrears, welfare packages, pension and National Housing Fund remittances, and training and career progression concerns. These are core labour issues that directly affect workers’ dignity and livelihoods. Efforts to dialogue with the FCT Minister reportedly failed. Even after a court ordered the strike to end, workers persisted, underscoring the depth of discontent. Threats and sanctions only hardened positions.
The FCT crisis shows that industrial peace cannot be enforced through coercion. Dialogue is not weakness; it is recognition that governance is about people. Meeting labour leaders, listening attentively, clarifying grey areas, and agreeing on timelines could restore trust. Honesty and negotiation are far more effective than threats.
In Anambra, protests by Onitsha Main Market traders followed the government’s closure of the market over continued observance of a Monday sit-at-home, linked to separatist agitation. Governor Chukwuma Soludo described compliance as economic sabotage, insisting Anambra cannot operate as a “four-day-a-week economy.” While the governor’s concern is understandable, threats to revoke ownership, seize, or demolish the market risk escalating tensions. Many traders comply out of fear, not ideology. Markets are social ecosystems of families, apprentices, and informal networks; heavy-handed enforcement may worsen resistance. A better approach combines persuasion, dialogue with market leaders, credible security assurances, and gradual confidence-building. Coordinated political engagement with federal authorities could also reduce regional tensions.
In Lagos, protests erupted over demolition of homes in low-income waterfront communities such as Makoko, Owode Onirin, and Oworonshoki. The state defended these actions as necessary for safety, environmental protection, and urban renewal. While objectives are legitimate, demolitions drew criticism for lack of notice, compensation, and humane resettlement. Urban development without regard for human consequences risks appearing elitist and anti-poor. Where demolitions are unavoidable, transparent engagement, fair compensation, and realistic relocation must precede action to maintain public trust and social stability.
Across Abuja, Anambra, and Lagos, a common thread emerges: a disconnect between authority and empathy. Government actions may follow policy logic, but citizens respond from lived experience, fear, and frustration. When these realities collide without dialogue, the streets become the arena of engagement.
Democracy cannot thrive on decrees, threats, or bulldozers alone. Leaders must listen as much as they command, persuade as much as they enforce. Minister Wike should see labour leaders as partners, Governor Soludo must balance firmness with sensitivity, and Lagos authorities should align urban renewal with compassion and justice. Protests are signals of communication failure. Dialogue, caution, and a human face in governance are not optional—they are necessities. Police and security agencies must respect peaceful protest as a constitutional right.
By: Calista Ezeaku
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