The Nigerian Electricity Regulatory Commission (NERC) has intensified efforts to resolve growing disputes over electricity tariffs by convening a high-level meeting with state electricity regulatory commissions (SERCs), distribution companies (Discos), and other key stakeholders in the Nigerian Electricity Supply Industry (NESI).
The two-day meeting, which began in Lagos on Monday, marks the third quarterly stakeholders’ forum of 2025.
It comes amid heightened tensions between states and power distribution companies over tariff determination rights, an issue that has triggered policy clashes and deepened consumer frustrations.
Nigeria’s electricity sector has been undergoing reforms following the Electricity Act 2023, which decentralised powers to states, enabling them to establish their own electricity markets and regulators.
While the move was hailed as a step toward efficiency and localized service delivery, it has also created overlapping responsibilities between NERC and state regulators, particularly in setting tariffs and managing distribution.
This tension has been described as a brewing “tariff war”, with both state commissions and Discos pushing for control over pricing structures.
Consumers, on the other hand, have been caught in the middle, facing higher costs of power supply without commensurate improvements in service delivery.
At Monday’s session, NERC confirmed that discussions centered on transition challenges, including:
Metering gaps – Nigeria still struggles with over seven million unmetered customers despite years of intervention programs.
Customer band migration – Controversies over reclassification of customers into tariff bands remain unresolved.
SubCo governance structures – As states gradually take on regulatory powers, questions over governance and accountability for sub-companies (SubCos) created from Discos are growing louder.
Asset and liability delineation – Who takes responsibility for legacy debts and infrastructure costs remains a contentious subject.
The commission also highlighted the proposal to establish a Forum of Regulators, a structured platform that will enable NERC and state regulators to coordinate policies, share data, and harmonize tariff frameworks to prevent regulatory overlap.
In posts shared via its official social media platforms, NERC described the meeting as a crucial opportunity to “drive the Nigerian electricity market forward and address ongoing transition challenges.”
“The quarterly meeting continues to serve as a vital platform for collaboration, alignment, and progress in shaping the future of Nigeria’s electricity supply industry,” the commission stated.
Industry analysts say the establishment of a regulator’s forum could be a game-changer, reducing conflicts and building trust among consumers who often view the sector as lacking transparency.
Beyond regulatory disputes, ordinary Nigerians remain worried about affordability and reliability of electricity.
Since April 2024, when NERC approved new cost-reflective tariffs, many households and small businesses have complained of steep increases in electricity bills despite continued power outages.
Civil society groups, including the Nigerian Consumer Rights Network, have called for “people-centered reforms” that prioritize service improvement over revenue generation.
“The tariff war is not just a regulatory conflict; it’s about the survival of millions of Nigerians who depend on power for their businesses and livelihoods,” the group said in a statement reacting to the ongoing meeting.
The Lagos meeting will continue on Tuesday with breakout sessions focusing on technical and financial sustainability of the sector.
Recommendations from the meeting are expected to shape tariff policies for the rest of 2025 and beyond.
Though NERC has yet to issue an official communiqué, sources within the sector indicate that resolutions may include timelines for settling tariff disputes, improved frameworks for customer complaint redress, and clearer guidelines on the handover of regulatory authority to states.
For Nigeria’s electricity market, the stakes are high.
Industry players argue that unresolved disputes could undermine investment confidence in the power sector, which already requires billions of dollars in fresh capital to stabilize supply.
By fostering dialogue between regulators and operators, NERC aims to restore stability and chart a path toward reliable electricity supply.
However, the real test will be whether outcomes from the Lagos meeting translate into measurable improvements for consumers still grappling with erratic supply and rising costs.