NERC seeks investors to boost electricity supply

The Nigerian Electricity Regulatory Commission has urged investors to take advantage of existing regulatory frameworks to finance large-scale projects and improve electricity supply across the country.

The commission said the regulatory environment offered opportunities for bankable and sustainable investments as the Federal Government pushes to expand generation capacity and improve access to reliable power for homes and businesses.

The Chairman of NERC, Dr Musiliu Oseni, made the call through the commission’s Director of Economic Regulation, Abba Terab, during a panel session at the 32nd Nigerian Economic Summit in Abuja.

According to a statement posted on NERC’s official X handle on Thursday, the discussion focused on the theme, “Power Growth: Reliable Electricity for Industry and Prosperity”.

The statement read, “The Nigerian Electricity Regulatory Commission has called on investors to take advantage of existing regulatory frameworks to drive large-scale investments capable of improving electricity supply across the country.”

Terab said the commission 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 can enable power to be generated closer to the customers and communities that need it.

The 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.

Other panellists highlighted the importance of regulation, gas infrastructure and commercial discipline in building a sustainable electricity market.

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 the 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.

Such arrangements could provide an alternative or complement to grid supply, particularly for industrial and commercial users that require dependable electricity to sustain production.

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.

The panel was moderated by Jumoke Delano, Managing Consultant at Competence Builders International.

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. Manufacturers and other commercial users have often had to rely on alternative sources of electricity, adding to production costs.

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.

The Nigerian Economic Summit was organised by the Nigerian Economic Summit Group as part of efforts to promote economic reforms and build an open, inclusive, sustainable and globally competitive economy driven by the private sector.