Energy Minister warns NESI players against actions that threaten the electricity market

Energy Minister Joseph Tegbe has urged operators in the Nigerian electricity supply industry (NESI) to avoid actions capable of destabilizing the country’s decentralized electricity market, stressing that collaboration, not competition, must guide institutions operating in the sector.

The minister was speaking on Tuesday in Abuja at a seminar on legal, policy and regulatory harmonization between federal and state institutions on the decentralization of NESI.

Tegbe said the federal government maintains a leadership role in the sector, even as state governments now exercise more responsibility.

He noted that the Nigerian Electricity Regulatory Commission (NERC) continues to regulate areas within its jurisdiction, while state electricity regulators are emerging to oversee their respective markets.

According to him, transmission remains a national asset, distribution companies continue to serve millions of customers, and generation companies continue to supply energy to the grid.

He added that private investors provide capital, development partners offer technical support, while consumers remain at the center of every decision made in the sector.

“None of these institutions exist in isolation. Our success is interconnected. That is why collaboration must become the defining principle of our decentralized electricity market,” Tegbe said.

He called for alignment on regulatory conflicts and mutual respect on jurisdictional rivalry, stressing that the Electricity Law “did not establish parallel electricity industries” but rather “complementary electricity markets operating within a national framework”.

The minister said the industry’s aim must be regulatory consistency, warning that investors should not encounter conflicting rules, nor should developers face contradictory approval processes.

“Consumers should not become victims of institutional uncertainty. Market participants should enjoy clarity, predictability and confidence wherever they choose to invest,” he said.