The Federal Government has waded into the escalating tariff war between state governments and electricity distribution companies (DisCos), as disputes over who holds the legal authority to fix electricity tariffs threaten to destabilize Nigeria’s power sector.
Through the Nigerian Electricity Regulatory Commission (NERC), the government has summoned state commissioners of power, DisCos, and other critical stakeholders to an emergency meeting scheduled for next week in Lagos.
The meeting is expected to address the widening rift following recent moves by some states to introduce their own electricity tariffs, in defiance of the national regulator.
At the center of the conflict is the Electricity Act, 2023 (Amended), which devolves greater regulatory powers to state governments over their own electricity markets.
Acting under this provision, the Enugu Electricity Regulatory Commission (EERC) recently slashed Band A tariffs from N209/kWh to N160/kWh, directing MainPower Electricity Distribution Limited to implement the new rate from August 1, 2025.
The move was hailed by the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN), which insists that states have clear constitutional backing to regulate distribution tariffs within their jurisdictions.
“Our focus is not on conflict but on reforms that will light up every home in Nigeria,” said FOCPEN Chairman and Cross River State Commissioner for Power, Prince Eka Williams.
But DisCos, under the Association of Nigerian Electricity Distributors (ANED), have strongly rejected the states’ tariff directives, warning that they could bankrupt operators and collapse the power sector.
ANED’s Executive Director, Sunday Oduntan, said states lack the authority to impose prices on electricity sourced from the national grid.
“If Enugu generates, transmits, and distributes its own power, it can fix tariffs.
But it cannot dictate the price of electricity produced elsewhere and supplied through the national grid. Such interference will only destroy the sector,” he warned.
MainPower Electricity Distribution Limited reinforced this concern, cutting supply to Enugu by 50 percent in early August, citing expected losses of over N1bn monthly if the state tariff order was enforced.
The action left thousands of Enugu residents in darkness.
In response, NERC has called for dialogue. Its spokesperson, Dr. Usman Abba-Arabi, confirmed that all parties — state regulators, DisCos, and other players in the Nigerian Electricity Supply Industry (NESI) — have been invited to the Lagos meeting.
“The forum will provide a platform to address concerns, clarify roles, and propose solutions.
We believe consensus is possible if stakeholders remain open-minded,” he said.
NERC has previously maintained that while states can regulate electricity distribution, they must not distort tariffs tied to national generation, transmission, and legacy financing costs.
It further warned that states seeking lower tariffs should be ready to subsidize the shortfall.
Despite pushback, Enugu’s regulators remain resolute. Special Adviser to the Governor on Power, Joe Aneke, insisted the new Band A tariff was carefully calculated without tampering with generation or transmission costs.
“Our model is based strictly on distribution costs. Some figures presented by DisCos for recovery — like claims of N9bn — were inflated.
When reviewed, we found them inaccurate. Therefore, the tariff cut is sustainable and fair to consumers,” Aneke explained.
The EERC has since accused MainPower of violating its directive by reverting to the old N209/kWh rate and threatened sanctions.
It urged overbilled customers to file complaints with evidence for regulatory action.
Analysts warn that the deepening rift reflects structural weaknesses in Nigeria’s electricity market.
While decentralization aims to empower states to develop localized solutions, poor coordination with federal regulators risks market fragmentation.
Industry experts caution that unless consensus is reached, disputes like the Enugu episode could spread to other states, worsening blackouts, discouraging investment, and fueling consumer frustration.
“The tension highlights a bigger question — how do we balance state autonomy with national grid stability?” said energy policy consultant, Dr. Tunde Akinola.
“If left unresolved, this could destabilize Nigeria’s already fragile power reforms.”
As Nigerians grapple with rising living costs and erratic power supply, the tariff war has become a politically sensitive issue.
Citizens demand relief from high tariffs, while operators insist that electricity must be priced at cost-recovery levels to ensure sustainability.
The Lagos meeting, therefore, represents a critical test for NERC and the Federal Government.
Observers say only a clear framework that balances consumer protection, investor confidence, and state autonomy can prevent a looming power sector crisis.
For now, all eyes remain on next week’s talks, where the future of electricity pricing in Nigeria may be decided.