Nigerian Electricity Regulatory Commission (NERC)
The Nigerian Electricity Regulatory Commission (NERC) is the independent regulatory authority responsible for overseeing the electric power industry in Nigeria. It was established in 2005 under the Electric Power Sector Reform Act (EPSR Act) as part of the Obasanjo administration’s economic reform agenda.
Mandate and Responsibilities
NERC was created to: - Regulate electricity tariffs for government and private power generating companies. - Promote transparency in subsidy and policy decisions. - Enforce environmental and technical standards. - Administer the Power Consumer Assistance Fund to subsidize electricity for underprivileged consumers. - License and monitor power generation, transmission, and distribution activities.
History
- 1896: Electricity generation began in Nigeria.
- 1929: Establishment of Nigeria Electric Supply Company (NESCO).
- 1951: Formation of the Electric Corporation of Nigeria (ECN).
- 1962: Creation of Nigeria Dams Authority (NDA).
- 1972: Merger of ECN and NDA to form National Electric Power Authority (NEPA).
- 2005: Enactment of the EPSR Act, leading to the creation of NERC.
- 2007: Formal inauguration of NERC, with Dr. Ransome Owan as its first Chairman/CEO.
Structure and Divisions
NERC is headed by a Chairman/Chief Executive Officer, and governed by a Board of Commissioners representing Nigeria’s geopolitical zones.
Divisions:
- Office of the Chairman/CEO
- Engineering, Standards and Safety Division
- Finance and Management Services
- Government and Consumer Affairs
- Legal Licensing and Enforcement
- Market Competition and Rates
- Renewable Energy / Research and Development
Reform and Impact
The EPSR Act of 2005 enabled the privatization of the electricity sector: - Unbundled NEPA/PHCN into separate generation, transmission, and distribution companies. - Allowed private investment and competition in electricity provision. - Gave NERC powers to issue licenses, impose penalties, and regulate market conduct.
Key Initiatives and Challenges
- NERC promotes the development of Independent Electric Transmission and Distribution Networks.
- Licenses over 40 power companies and supervises the Transmission Company of Nigeria (TCN).
- Collaborates with environmental and technical agencies for project approval.
- Faces challenges including:
- Low generation capacity
- Aging transmission infrastructure
- Rampant electricity theft and metering issues
Leadership Timeline
First Chairman:
- Dr. Ransome Owan (2007–2010)
Second Chairman:
- Dr. Sam Amadi (2010–2015)
- Introduced stakeholder engagement forums
- Advocated rule of law in sector governance
Acting Chairman:
- Anthony Akah (2015–2017)
Current Chairman:
- Prof. James Momoh (2018–present)
- Professor of Electrical Engineering (Howard University)
Board of Commissioners
Appointed in February 2017:
- James Momoh – Chairman
- Sanusi Garba – Vice Chairman
- Nathan Shatti – Finance and Management
- Moses Arigu – Consumer Affairs (replaced in 2022)
- Dafe Akpeneye – Legal Licensing and Compliance
- Frank Okafor – Engineering (replaced in 2022)
- Musiliu Oseni – Planning, Research and Strategy
Confirmed in February 2022:
- Nathan Shatti – Reappointed
- Dafe Akpeneye – Reappointed
- Dr. Yusuf Ali (North Central) – Consumer Affairs
- Chidi Ike (South East) – Engineering Performance and Monitoring
See Also
External Links
- NERC Official Website(https://nerc.gov.ng)
- Energy Commission of Nigeria(http://energy.gov.ng)
- Transmission Company of Nigeria(http://www.tcn.org.ng)