KEY POINTS
- President Tinubu has reconstituted the board of the Nigerian Electricity Regulatory Commission (NERC), appointing long-serving insider Dr. Musiliu Oseni as Chairman to steer critical reforms in the crisis-ridden power sector.
- The leadership change is strategically timed to oversee the complex implementation of the landmark Electricity Act 2023, which decentralises regulatory control to states, even as the Senate considers further amendments to the new law.
- The new board faces the immense challenge of stabilising a sector plagued by blackouts and massive debt, while balancing controversial tariff increases, attracting investment, and coordinating a historic shift to a federalised electricity market.
President Bola Tinubu has moved to reinvigorate Nigeria’s faltering power sector by reconstituting the board of the Nigerian Electricity Regulatory Commission, NERC, appointing insider Dr. Musiliu Olalekan Oseni as its new Chairman.
The move, confirmed by the Senate on December 16, signals an attempt to steady the nation’s top electricity regulator amid chronic blackouts, a mounting sector debt crisis, and the complex rollout of a landmark new law aimed at decentralising control.
The presidential announcement, made by spokesman Bayo Onanuga, confirmed Dr. Oseni’s elevation from Vice Chairman, a role he held since joining the commission as a Commissioner in 2017. He replaces Abdullahi Ramat, whose own nomination earlier this year had surprised industry observers.
Dr. Yusuf Ali, a Commissioner since 2022, was named as the new Vice Chairman. “President Bola Ahmed Tinubu has charged the board members of NERC to deepen and consolidate the ongoing transformation of Nigeria’s power sector,” the statement read, emphasising continuity by noting Oseni’s appointment will last the remainder of his ten-year tenure at the commission.
The board reshuffle comes at a critical juncture. It follows Tinubu’s signing of the Electricity Act 2023, which repealed a decades-old law and began the monumental task of devolving regulatory authority from the federal government to Nigeria’s 36 states.
The Act envisions a more competitive, investment-friendly market, but its implementation has been fraught with uncertainty. The newly constituted board, which includes veteran commissioners like Dafe Akpeneye and energy economist Dr. Fouad Animashaun, is now tasked with translating this ambitious legal framework into tangible results for both frustrated consumers and wary investors.
A Regulatory Balancing Act Amid Sectoral Crisis and Legislative Scrutiny
The new leadership inherits a sector in deep distress. National grid collapses remain frequent, leaving households and businesses reliant on expensive diesel generators.
The financial health of the industry is perilous, with a legacy debt of over 3 trillion naira owed to generating companies and the national grid operator, severely undermining incentives for new investment. Furthermore, the recent removal of electricity subsidies has led to a sharp, politically sensitive rise in tariffs, testing public patience with the reform agenda.
The reconstitution of NERC is directly linked to the challenges of implementing the 2023 Electricity Act. The law empowers states to establish their own regulatory agencies and manage intrastate electricity markets, a radical shift from the old centralised model.
As the federal regulator, NERC must now navigate this new, more complex landscape, setting national standards while coordinating with nascent state-level bodies. Dr. Animashaun’s experience as the former CEO of the Lagos State Electricity Regulatory Commission is viewed as a strategic asset in this delicate federal-state transition.
However, the regulatory foundation itself is under review. The Senate is currently debating an amendment bill to the 2023 Act, sponsored by Senator Enyinnaya Abaribe, which aims to address perceived loopholes and “rescue” the struggling sector.
Some stakeholders warn that constant legislative tinkering so soon after the principal Act’s passage risks deterring the very investment the reforms seek to attract. The new NERC board must therefore regulate a sector in legislative flux, working with lawmakers while providing the policy stability the market desperately needs.
With a mandate to oversee tariffs, licensing, and consumer protection, the commission’s decisions will directly impact the cost of living and the ease of doing business.
President Tinubu’s administration is betting that a refreshed and experienced regulatory team can provide the technical rigor and strategic direction needed to finally turn the lights on for Nigeria’s economic ambitions. The success or failure of this recalibrated watchdog will be a key measure of whether the country’s power reforms can move from ambitious legislation to reliable electricity.
