NERC has no authority over state tariff — Enugu Electric
…Insists on ₦160/MWh for Band A
…As RMAFC backs decentralised power generation
The Enugu Electricity Regulatory Commission (EERC) has asserted that the Nigerian Electricity Regulatory Commission (NERC) does not have legal authority to override tariff decisions made by state-level electricity regulators.
Joe Aneke, Special Adviser to the Enugu State Governor on Power, made this known during a meeting with state commissioners for energy held in Abuja, following EERC’s recent decision to cut Band A electricity tariff from ₦209/kWh to ₦160/kWh.
Aneke stated that NERC’s regulatory powers do not extend to the tariff-setting responsibilities of sub-national commissions. He explained that the Enugu Power Commission developed its tariff independently, using its own software and data, without relying on NERC’s methodology.
He also flagged ongoing difficulties in accessing necessary operational data from both NERC and the Enugu Electricity Distribution Company (EEDC), despite their legal obligation to share such information.
Criticising NERC’s public response, Aneke noted that the national regulator did not seek clarification from EERC before issuing statements. He pointed out that the commission’s enabling law has been publicly accessible on its website for over a year and that any concerns could have been addressed well before now.
He clarified that Enugu’s tariff decisions apply strictly to distribution activities, while generation and transmission remain under NERC’s regulatory purview. The cost-reflective methodology used by the state, according to him, was based on data provided by EEDC, and aims to prevent debt build-up while balancing consumer interests with the financial viability of service providers.
Aneke noted that the legal and technical framework allowing state regulation of electricity took over ten years to build, supported by international partners including the World Bank and UK aid agencies.
While acknowledging NERC’s request for data and explanations, he maintained that the federal regulator lacks legal authority to veto state decisions. He called for improved data-sharing and collaboration among NERC, state commissions and distribution companies to ensure more accurate and transparent tariff models.
He also dismissed the notion that Enugu’s tariff revision was politically driven or designed to undermine federal authority, stating that the state commission operates within its legal mandate. He pointed to misclassification of some Band A customers as a contributing factor to recent confusion.
According to Aneke, despite repeated requests, timely access to comprehensive datasets from both NERC and EEDC has been inadequate, hampering smooth tariff formulation.
He reiterated that the Enugu Commission regulates only distribution and that it ensures EEDC fulfils obligations such as payments to the Nigerian Bulk Electricity Trading Plc (NBET). Generation and transmission, he affirmed, remain under the purview of NERC.
Aneke appealed to all parties in the electricity value chain to work with facts and shared objectives, cautioning against misinformation and regulatory excesses.
Minister of Power, Adebayo Adelabu, also addressed the meeting. He called for greater alignment between federal and state electricity institutions to prevent disruptions in the market.
Adelabu acknowledged states’ constitutional rights to manage their own electricity markets, but stressed that federal involvement is crucial due to its control of the national grid and wholesale market. He said the power sector is interconnected and requires coordinated actions across state lines in the areas of generation, transmission and distribution.
He warned that poorly aligned sub-national regulation could lead to technical, commercial or legal challenges, affect neighbouring states’ power supply, destabilise the grid, and deter investors. Coordinated efforts, he said, would protect the grid’s integrity, optimise resources and guarantee reliable and affordable power for Nigerians.
The minister also encouraged states to prioritise electrifying unserved and underserved areas, adding that the Rural Electrification Agency (REA) is available to provide financial and technical support.
He called for greater investment in off-grid technologies, such as mini-grids and standalone systems, to improve access in hard-to-reach locations. Adelabu reiterated that aligning regulatory efforts across all levels is vital to achieving stable and inclusive electrification.
He stressed the need for consistent standards and investor-friendly policies to boost confidence and accelerate development in the power sector. According to him, a fragmented regulatory approach would create uncertainty and hinder progress.
Chairman of the Forum of Commissioners for Power and Energy in Nigeria, Eka Williams, also spoke at the gathering. He insisted that there is no conflict between federal and state authorities on market regulation.
Williams stated that states remain focused on delivering value to consumers and are committed to the effective implementation of the Electricity Act. He called for clarification on how states would be recognised in proposed amendments to the Act and reaffirmed their support for a cohesive, sustainable electricity market.
…RMAFC backs decentralised power market
Meanwhile, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has expressed full support for constitutional amendments enabling state governments to generate and distribute electricity.
Describing the reform as a major step toward greater energy access, RMAFC said the policy shift will also help Nigeria attract international climate finance.
Speaking at the First African Conference on Climate Justice in Abuja, RMAFC Chairman, Dr Mohammed Bello Shehu, said that moving electricity from the exclusive list to the concurrent legislative list empowers subnational governments to actively participate in power delivery.
Represented by Hon. Ismail Mohammed Agaka, Federal Commissioner for Kwara State, Dr Shehu said this development promotes inclusive governance and improves Nigeria’s eligibility for global climate funding at both federal and state levels.
The conference, co-hosted by RMAFC and the Centre for African-American Research Studies (CAARS), convened experts, scholars, civil society groups and climate advocates to explore Africa’s position in the global climate justice movement.
In a statement issued by Maryam Umar Yusuf, Head of Information and Public Relations at RMAFC, the Commission described the collaboration with CAARS as essential. Dr Shehu noted that both institutions share a commitment to addressing climate and energy challenges.
He called the event “a landmark international conference on climate justice” and applauded CAARS for choosing RMAFC as a strategic partner in advancing the continent’s climate finance agenda. He added that partnerships of this nature will help Africa access funding to address climate vulnerabilities and infrastructure gaps.
Delivering the keynote, Prof. Nnamdi Nwaodu, Director General of CAARS and Chief Convener of the conference, urged African stakeholders to develop practical and fair financing models tailored to the continent’s needs.
He said climate justice must account for the fact that communities least responsible for global emissions are often the worst affected by its impacts.
“We are not here to rehearse the known statistics of environmental harm—we are here to act,” Prof. Nwaodu declared. “It’s time to claim our seat at the table and design climate finance frameworks that reflect our continent’s realities.”
The conference also featured technical presentations, including a lecture by Prof. Ignatius Onimawo, former Vice Chancellor of Ambrose Alli University, who spoke on climate adaptation, governance and resilience strategies.
A panel of civil society leaders and youth advocates also discussed how climate finance could be channelled to support local development and boost community resilience across Africa.