About NERC

In Nigeria, electricity is not merely a commodity; it is a vital enabler of economic growth, social development, and overall well-being. Yet, ensuring a reliable, accessible, and sustainable supply of electricity to over 200 million Nigerians is no small feat. In this dynamic landscape, one organization stands as a beacon of regulation and oversight: the Nigerian Electricity Regulatory Commission (NERC).

History

Nigerian Electricity Regulatory Commission (NERC) is an independent regulatory body with authority for the regulation of the electric power industry in Nigeria. NERC was formed in 2005 under the Obasanjo administration’s economic reform agenda through the Electric Power Sector Reform Act, 2005 (repealed), now the Electricity Act 2023 for the formation and review of electricity tariffs, transparent policies regarding subsidies, promotion of policies that are efficient and environmentally friendly, and also including forming and enforcing of standards in the creation and use of electricity in Nigeria. NERC was instituted primarily to regulate the tariff of Power Generating companies owned or controlled by the government, and any other generating company which has a license for power generation and transmission of energy, and distribution of electricity.

NERC’s mandate revolves around regulating the generation, transmission, distribution, and trading of electricity across Nigeria. One of its primary functions is tariff regulation, a delicate balancing act between ensuring affordable electricity for consumers and maintaining the financial viability of service providers. Through meticulous oversight and strategic interventions, NERC aims to foster an environment where fair pricing aligns with sustainable industry growth.

Infrastructure Development and Investment

Central to NERC’s mission is the promotion of investment in Nigeria’s electricity infrastructure. From licensing new power generation projects to overseeing the expansion of transmission networks and distribution grids, NERC plays a pivotal role in bolstering the country’s energy capacity. By facilitating the development of robust infrastructure, NERC endeavors to address the perennial challenge of inadequate power supply and unlock Nigeria’s economic potential.

Championing Transparency and Accountability

In its pursuit of a more accountable and transparent electricity sector, NERC conducts regular audits and inspections of industry players. From ensuring compliance with regulatory standards to resolving disputes and grievances, NERC acts as a vigilant guardian of consumer rights and industry integrity. Through its rigorous oversight mechanisms, NERC strives to instill confidence in stakeholders and promote trust in the electricity market.

Services Offered

  1. Tariff Regulation: NERC sets electricity prices and tariffs for different consumer categories, balancing affordability with financial sustainability.
  2. Licensing and Regulation: NERC licenses and regulates electricity generation, transmission, distribution, and trading activities, ensuring compliance with industry standards.
  3. Infrastructure Development: NERC promotes investment in electricity infrastructure, facilitating the expansion of power generation, transmission, and distribution networks.
  4. Transparency and Accountability: NERC conducts audits, inspections, and dispute resolution processes to uphold transparency and accountability within the electricity sector.

Navigating Challenges, Driving Reform

Despite its noble aspirations, NERC faces a myriad of challenges on its path to reforming Nigeria’s electricity sector. Issues such as tariff rationalization, revenue collection, and governance deficiencies continue to pose significant hurdles. However, NERC remains steadfast in its commitment to driving meaningful change. Through strategic reforms, stakeholder engagement, and innovative solutions, NERC seeks to overcome obstacles and pave the way for a brighter energy future for Nigeria.

Our Mission

Promote and ensure an investor-friendly industry and efficient market structure to meet the needs of Nigeria for safe, adequate, reliable and affordable electricity.

Our Vision

Electricity on Demand

Values

1. Leadership: excellence, transparency, courage and discipline

2. Professionalism: proficiency, diligence, respect, fairness and accountability.

3. Teamwork: creating an environment of loyalty, trust, collaboration, and stakeholder engagement.

4. Good Governance: making decisions in a fair, transparent and consistent manner, in compliance with the laws of Nigeria and our regulation.

NERC As An Independent Regulator

The Nigerian Electricity Regulatory Commission is an independent body, established by the Electric Power Sector Reform Act of 2005 (repealed), now the Electricity Act of 2023 to undertake technical and economic regulation of the Nigerian Electricity Supply Industry. The Commission is to, among others license operators, determine operating codes and standards, establish customer rights and obligations and set cost reflective industry tariffs. The Commission has its head quarters in Abuja, and currently has presence in most states of the country through its Forum Offices which function as the first level of escalation for customer complaints that are not resolved by the electricity distribution companies (DisCos).

NERC Structure

The Electricity Act 2023, provides for the tenured appointment of seven Commissioners, with one of them designated as Chairman/Chief Executive Officer, and another as Vice Chairman. The Commissioners are nominated by the President and confirmed by the Senate. The Commission is made up of seven Divisions, each with its strategic role in ensuring the smooth running of day to day activities of NERC.

  • Consumer Affairs
  • Engineering and Performance Monitoring
  • Finance and Management Services
  • Legal, Licensing and Compliance
  • Market Competition and Rates
  • Office of the Chairman
  • Planning, Research and Strategy

Summary 

As Nigeria marches forward on its journey towards sustainable development and prosperity, the role of the Nigerian Electricity Regulatory Commission cannot be overstated. By championing regulation, transparency, and accountability, NERC serves as a linchpin of stability and progress within the electricity sector. As the nation grapples with the complexities of energy transition and infrastructure modernization, NERC hopes to stands ready to lead, empower, and shape Nigeria’s energy future for generations to come.