international

Africa/Middle East: Nigeria

Nigeria Electricity Regulatory Partnership:
Bolstering Electricity Sector Reform in Nigeria

NERC participants weigh options during NARUC’s Cost-Reflective Training in Abuja, Nigeria, September 2015.

The Energy Sector

Since the enactment of the Electric Power Sector Reform Act in 2005, Nigeria has embarked on a decade-long effort to reform its electricity sector. Nigeria’s electricity supply currently falls well short of demand, and a growing population and GDP (6.4% increase in 2014) will substantially increase demand for electricity in the future. As part of its reform of the sector, Nigeria has set ambitious targets for increasing its installed generation capacity and integrating renewable sources of energy.

The 2005 Reform Act created the Nigerian Electricity Regulatory Commission (NERC), which is mandated to license and regulate electricity generation, transmission, and distribution in the country. NERC seeks to reform the regulatory environment in order to protect the interests of electricity customers, create an environment of stability for investors, and take steps to increase service quality and access around the country. NERC also implements government plans to integrate renewables, improve reliability, and increase sector efficiency.

In a 2013 effort to unbundle the sector, the Government of Nigeria sold off government-owned distribution and generation companies to private entities but retained the transmission company under its control. With these privatization efforts, Nigeria is seeking to incentivize private investment in its electricity sector in order to increase generation, bolster infrastructure, and improve service quality. NERC is responsible for regulating these newly-privatized entities within the sector and implementing national goals related to efficiency and environmental protection.

 

Our Work

With support from the United States Agency for International Development (USAID) and Power Africa, the Nigeria Electricity Regulatory Partnership provides technical assistance on regulatory issues that NERC needs to implement regulatory reforms in the Nigerian electricity sector. Since 2008, NARUC has worked with NERC to develop more cost-reflective tariff methodologies, improve customer service, and establish an independent system operator. NARUC has also assisted NERC as it has worked to improve its service monitoring and enforcement tools, develop energy efficiency standards, develop and implement a Transitional Electricity Market strategy, and develop a Uniform System of Accounts. NARUC continues to work with NERC to build its capacity to overcome challenges going forward.

 

Selected Results

Tariff Methodology:
NARUC provided a platform for NERC and private sector stakeholders to understand the methods that regulators can use to develop more cost-reflective electricity tariffs through an interactive software-based simulation.

Market Stabilization:
NARUC experts helped NERC develop a regulation to prevent market power abuses and stabilize the electricity sector in the event of a major bankruptcy.

Transitional Electricity Market:
NARUC has supported NERC at every stage during its march toward a fully-reformed sector by developing strategies to implement reforms and creating Key Performance Indicators to determine readiness to move to a more advanced stage.

At A Glance

Project Dates: 2008-Present

Primary Partners:

Nigerian Electricity Regulatory Commission

Contact Us About This Project

Activities

New Commissioners Orientation
May 16 - 19, 2017

Job Shadow on Public Hearings
June 20 - July 1, 2016

Assessment and Training on Commission Structure and Operations
June 7 – September 16, 2016

Externship on Enforcement
June 13 - 17, 2016

Technical Workshop on Power Purchase Agreements
February 22 - 24, 2016

Externship on Stakeholder Engagement
February 15 - 19, 2016

Peer Review on Customer Service
December 8 - 10, 2015

Technical Workshop on Cost-Reflective Tariffs
September 14 - 17, 2015

Study Tour on Market Monitoring
July 21 - 30, 2015

Job Shadows on Customer Service and Complaint Handling
June 1 - 12, 2015 and June 22 - July 3, 2015

Technical Workshop on Reliability and Quality of Power
May 5 - 8, 2015

Technical Workshop on Energy Efficiency and Demand-Side Management
December 3 - 5, 2014

Peer Review on Uniform System of Accounts
June 2 - 4, 2014

NARUC Utility Rate School
May 10 - 14, 2014

NARUC Practical Regulatory Training
May 11 - 16, 2014

Technical Workshop on Gas-to-Power
November 28 - 30, 2012

Advanced Regulatory Studies Program and Internship
October 1 - 26, 2012

Internship on Electricity Markets
October 22 - November 16, 2012

Partnership Exchange on Complaints Handling and Uniform System of Accounts
October 8 - 12, 2012

NARUC Utility Rate School
May 14 - 18, 2012

Study Tour and World Forum on Energy Regulation
May 7 - 16, 2012

Partnership Exchange on Consumer Relations and Tariffs
October 24 - 28, 2011

Partnership Exchange on Regulatory Frameworks
June 27 - July 1, 2011

NARUC Utility Rate School
May 9 - 13, 2011

Study Tour on Renewable Energy and Energy Efficiency
March 28 - April 1, 2011

Partnership Exchange on Market Reforms
September 20 - 24, 2010

Partnership Exchange on Regional Transmission Organization
June 28 - July 2, 2010

NARUC Utility Rate School
May 10 - 14, 2010

Partnership Exchange on Consumer Affairs
August 3 - 7, 2009

Partnership Exchange on Market Reforms
November 30 - December 7, 2008

Partnership Exchange on Tariffs
July 14 - 18, 2008