The Nigeria Governors’ Forum (NGF) is developing a common electricity tariff framework to guide pricing across states and reduce differences in electricity charges under Nigeria’s decentralised power system.
The initiative was disclosed at the ongoing Lagos Energy Summit by the forum’s representative, Chijioke Chukwu, who said the proposed methodology would help state governments determine appropriate electricity tariffs.
Chukwu explained that some states had experienced difficulties establishing their own tariffs following the transfer of electricity regulatory powers from the Federal Government to state authorities.
He said the framework would provide common guidelines for tariff calculations and establish minimum standards for electricity market operations across the country. It is expected to be ready by the first quarter of 2027.
The decentralisation of electricity regulation has allowed states to establish independent electricity markets and regulatory institutions. However, the arrangement has raised concerns about possible differences in electricity prices, licensing procedures and technical standards across states.
To support the transition, the NGF has developed a model electricity law based on the Electricity Act. The proposed legislation is designed to guide states in creating their regulatory frameworks while allowing them to make adjustments based on their individual circumstances.
Chukwu noted that limited technical expertise and inadequate understanding of regulatory requirements had made it difficult for some states to enact their electricity laws.
Beyond the proposed tariff methodology, the forum is also working on public-private partnership guidelines, integrated resource plans and service-level agreements to support the development of functional electricity markets.
Meanwhile, concerns over weak regulatory enforcement and financial challenges in the power sector have continued to affect industry performance.
A member of the Presidential Task Force on Power Sector Reset and Restoration, Uzoma Achinanya, warned that poor monitoring and enforcement of existing regulations remained a major problem in the industry.
He argued that introducing additional laws would not improve the sector unless regulators ensured compliance with established rules.
Achinanya also identified poor payment discipline as a threat to sustainable electricity supply, stressing that gas suppliers and power generation companies could not continue providing services without receiving payments.
The NGF’s proposed framework comes as Nigeria continues to restructure its electricity industry, with states assuming greater responsibility for regulating power markets and improving electricity supply within their jurisdictions.
