Federal Government Wades Into Power Sector Crisis, Summons States, Discos to Lagos Meeting

The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has summoned all stakeholders in the Nigerian Electricity Supply Industry to a meeting scheduled for next week in Lagos to resolve the escalating dispute between state governments and electricity distribution companies.

The crisis deepened after the Enugu Electricity Regulatory Commission slashed Band A tariffs from ₦209/kWh to ₦160/kWh, a move rejected by the Enugu Electricity Distribution Company, which cut supply by 50 percent, citing losses of over ₦1bn monthly. While the Forum of Commissioners for Power and Energy in Nigeria insists that the 2023 Electricity Act empowers states to regulate their power markets, the Association of Nigerian Electricity Distributors argues that states cannot fix electricity tariffs sourced from the national grid. Additionally, NERC’s spokesperson, Dr. Usman Abba-Arabi, confirmed that state regulatory commissions, Discos, and other industry players have been invited, stressing that the forum will address the tariff dispute and seek solutions. Meanwhile, tensions remain high as states maintain that they have constitutional backing to regulate distribution tariffs, while Discos warn that selling below cost could collapse the power sector.