NERC: Invites Electricity Sector Investors for Nigeria's Power Growth

• The Nigerian Electricity Regulatory Commission (NERC) is actively seeking investors to finance large-scale electricity projects and improve supply across Nigeria.
• NERC Chairman Dr. Musiliu Oseni, through Abba Terab, highlighted existing regulatory frameworks and the Electricity Act as key enablers for bankable investments.
• The government's Vision 30:30:30 target and promotion of decentralized models like embedded generation and net billing create new investment opportunities.
• Industry leaders emphasized the importance of regulatory support, gas infrastructure, and commercial discipline for a sustainable power market.
• Despite investment calls, Nigeria's electricity sector continues to face challenges including unreliable supply, infrastructure deficits, and high operating costs.

The Nigerian Electricity Regulatory Commission is actively inviting electricity sector investors to capitalize on a robust regulatory environment designed to foster significant capital injection and enhance power delivery nationwide.

The Nigerian Electricity Regulatory Commission (NERC) is actively inviting electricity sector investors to capitalize on a robust regulatory environment designed to foster significant capital injection and enhance power delivery nationwide. This call was articulated by Dr. Musiliu Oseni, the Chairman of NERC, through Abba Terab, the commission's Director of Economic Regulation, during a panel discussion at the 32nd Nigerian Economic Summit held in Abuja. The commission emphasized that the current regulatory landscape presents numerous opportunities for financially sound and sustainable investments, aligning with the Federal Government's broader objective to expand generation capacity and ensure more dependable power access for both residential and commercial consumers.

The panel session, which focused on the theme "Power Growth: Reliable Electricity for Industry and Prosperity," underscored the government's commitment to transforming the nation's energy sector. A statement released on NERC's official X handle confirmed the commission's proactive stance in encouraging private sector participation. This strategic outreach highlights NERC's role in creating an attractive climate for those looking to invest in Nigeria's burgeoning electricity market.

Abba Terab further elaborated that the Nigerian Electricity Regulatory Commission has meticulously developed and implemented specific regulatory instruments aimed at supporting viable transactions and drawing private capital into the electricity market. These measures are integral to the Federal Government's ongoing efforts to liberalize the sector, primarily through the provisions of the Electricity Act and supplementary regulations issued by NERC. This comprehensive approach is in direct pursuit of the government's ambitious Vision 30:30:30 target, which seeks to achieve 30 gigawatts of electricity generation by 2030, with 30% from renewable sources.

Crucially, the government is championing decentralized electricity supply models, such as embedded generation, which enable power to be produced closer to the end-users and communities. This innovative strategy is expected to unlock new Nigeria Electricity Act investment opportunities that extend beyond the traditional national grid supply model, offering businesses and other customers more reliable power solutions. Additionally, NERC supports net billing arrangements Nigeria, which permit customers who generate their own electricity, particularly from renewable sources, to receive credits or payments for any surplus power they export back to the grid, thereby accelerating the adoption of clean energy technologies.

During the summit, other industry leaders provided their insights into building a sustainable electricity market. Chijioke Okwuokenye, the Managing Director of the Abuja Electricity Distribution Company, stressed the critical role of regulatory support for initiatives like embedded generation and net billing arrangements, which are vital for integrating renewable energy. Deen Solebo, Managing Director of Elektron, highlighted the government's focus on enhancing gas-to-power infrastructure, noting that medium-scale power plants could more efficiently serve specific geographical regions and customer segments. Such arrangements offer a crucial alternative or complement to the existing grid supply, particularly for industrial and commercial users who depend on consistent electricity for their operations.

Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria, emphasized the necessity of establishing a robust electricity market where suppliers consistently deliver power and customers reliably pay for the energy consumed. He pointed out that the current unreliable supply significantly inflates operating costs for manufacturers, while weak payment discipline undermines the financial stability of electricity providers. These remarks, made during a panel moderated by Jumoke Delano of Competence Builders International, underscore the persistent challenges facing Nigeria's electricity sector, including inadequate and unreliable supply, infrastructure limitations, and high operational expenses, all of which NERC invites electricity sector investors Nigeria to help address.

Lawyers advising clients on energy investments in Nigeria should be aware of NERC's new regulatory instruments and the Electricity Act, which facilitate private capital and decentralized supply models like embedded generation and net billing. This presents opportunities for structuring new energy projects and ensuring compliance with evolving sector regulations, particularly for clients looking to enter or expand within the Nigerian power market.

Source: Original reporting via PUNCH