The Federal Government has waded into the escalating dispute between state governments and electricity distribution companies (Discos) over who has the authority to set electricity tariffs in Nigeria.
The Nigerian Electricity Regulatory Commission (NERC) confirmed on Thursday that it has summoned key stakeholders—including state energy regulators, Discos, and power sector operators—to a meeting scheduled for next week in Lagos. The dialogue is expected to ease tensions and seek lasting solutions to the tariff crisis.
The rift stems from the 2023 Amended Electricity Act, which gave states powers to regulate their own electricity markets. Energy commissioners, under the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN), insist that this law grants states the right to design tariffs. However, Discos, through the Association of Nigerian Electricity Distributors, argue that states cannot determine prices for power sourced from the national grid, warning that such actions could destabilize the sector.
The conflict came to a head in Enugu State after its regulatory commission ordered a cut in Band A tariffs from ₦209/kWh to ₦160/kWh. The directive led MainPower Electricity Distribution Limited to implement the new rate, but its supplier—the Enugu Electricity Distribution Company—slashed power supply by 50%, citing projected losses of over ₦1bn monthly. Customers were left in darkness, while the Disco eventually reverted to the old tariff, ignoring the state order.
In response, the Enugu Electricity Regulatory Commission accused MainPower of breaching its tariff directive and threatened sanctions. Meanwhile, Discos nationwide have cautioned states against policies they say could collapse the power sector.
NERC’s spokesperson, Dr. Usman Abba-Arabi, stressed that next week’s Lagos meeting will provide a platform for all parties to deliberate and resolve the standoff. “It’s a forum where industry issues will be discussed and solutions proffered,” he said, adding that the session will be strictly for industry players, without press coverage.
Despite the tension, state officials insist they are only working to make electricity more affordable. Enugu State, for instance, maintains that its tariff cut targeted only distribution costs, leaving generation and transmission untouched. FOCPEN also emphasized that its focus is on expanding power access, not conflict with operators.
The coming days will reveal whether the federal regulator’s intervention can calm the growing storm over Nigeria’s electricity tariffs, a dispute that risks further disrupting supply for millions of households.
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