Nigerian Electricity Regulatory Commission (NERC) has said that the country’s electricity challenges go beyond generation, transmission and distribution to a structural dysfunction in the system.

According to the NERC, the country’s electricity challenges rather stem from the inability of the electricity market to function in a sustainable structure.

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NERC Chairman, Dr. Musiliu Olalekan Oseni, who disclosed this while making his presentation during the inauguration of the Forum of Nigerian Electricity Regulators (FoNER), further warned that the continued focus on individual parts of the electricity value chain does not address the real issue affecting the industry.

According to Dr. Oseni, the country needs a well-coordinated electricity market that supports reliable power supply, attracts investment and promotes long-term growth.

He explained that the major concern should not be the amount of electricity produced, but how the market operates to ensure efficiency and sustainability.

The NERC chairman, therefore, urged regulators at both the federal and state levels to synergise and coordinate their implementing reforms, as he noted that failure to do this could create opportunities for market operators to exploit differences in regulatory systems.

He said effective coordination and responsible regulation are necessary to build a stable electricity market capable of delivering reliable power supply and supporting national economic growth.

Oseni said the newly-inaugurated forum would strengthen cooperation among regulators, improve consumer protection and support policies that encourage investment in the power sector.

He added that the platform would help create a more unified regulatory environment across the country, further noting that Nigeria’s electricity sector continues to face several challenges, including inadequate funding, ageing infrastructure and differences in regulatory approaches across states, all of which he noted continue to affect the performance of the power industry.