The Nigerian Electricity Regulatory Commission has urged investors to use existing regulatory frameworks to finance large-scale electricity projects and improve supply across the country. The commission's Director of Economic Regulation, Abba Terab, made the call during a panel session at the 32nd Nigerian Economic Summit in Abuja, saying the regulatory environment offered opportunities for bankable and sustainable investments as the Federal Government seeks to expand generation capacity and improve access to reliable power for homes and businesses.
Terab said NERC had established regulatory instruments to support viable transactions and attract private capital into the electricity market. He explained that the Federal Government was continuing to liberalise the sector through the Electricity Act and supporting regulations issued by NERC, in line with its Vision 30:30:30 target. The government's efforts include promoting decentralised electricity supply models, such as embedded generation, which allows power to be generated closer to the customers and communities that need it. This approach is expected to create additional investment opportunities beyond the conventional model of supplying electricity through the national grid, while helping businesses and other customers access more reliable power.
The Managing Director of the Abuja Electricity Distribution Company, Chijioke Okwuokenye, said regulatory support was important for initiatives such as embedded generation and net billing arrangements, which could accelerate the adoption of renewable energy. Net billing allows customers who generate electricity, including from renewable sources, to receive credits or payments for power exported to the grid, subject to applicable regulatory arrangements. The Managing Director of Elektron, Deen Solebo, highlighted government efforts to strengthen gas-to-power infrastructure, saying medium-scale power plants could serve specific geographical areas and groups of customers more efficiently.
The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, stressed the need to establish a viable electricity market in which suppliers deliver power reliably and customers pay for the energy received. His remarks underscored the commercial challenges facing the sector, where unreliable supply raises operating costs for manufacturers and weak payment discipline can undermine the financial capacity of electricity providers. Nigeria's electricity sector has faced persistent challenges, including inadequate and unreliable supply, infrastructure constraints and the high cost of operating businesses without dependable grid power. The Electricity Act 2023 provides a framework for greater participation by state governments and private operators in electricity markets, creating opportunities for decentralised generation and distribution under applicable regulatory requirements.