Who Does What under Electricity Act 2023
Institutional Roles under the Electricity Act 2023
The Electricity Act 2023 provides clearer separation and coordination of institutional responsibilities within Nigeria’s electricity sector. The Act supports efficiency, accountability, system reliability, market transparency, safety enforcement, and expanded access.
This guidance outlines the statutory functions of key agencies.
Federal Ministry of Power – www.power.gov.ng
Policy, Strategy, and Sector Coordination
- Formulate and implement national electricity policies and strategies
- Provide policy direction to federal electricity sector institutions
- Coordinate federal government participation in the electricity industry
- Lead sector reform initiatives and investment facilitation
- Align electricity development with national economic and energy goals
- Represent Nigeria in international electricity and energy engagements
Nigerian Electricity Regulatory Commission (NERC)- www.nerc.gov.ng
Federal Economic and Technical Regulation
- Regulate interstate and international electricity activities
- Issue, modify, suspend, and revoke federal electricity licences
- Approve tariffs for interstate services and states without regulators
- Set and enforce technical, operational, and quality-of-service standards
- Protect consumers and promote fair competition
- Resolve disputes and enforce compliance with the Act
Nigerian Electricity Management Services Agency (NEMSA) – www. nemsa.gov.ng
Electrical Safety and Technical Compliance
- Enforce technical standards across the electricity value chain
- Inspect, test, and certify electrical installations and equipment
- Test, certify, and verify electricity meters
- Investigate electrical accidents, incidents, and system failures
- Ensure electrical safety to protect lives, property, and infrastructure
- Support compliance monitoring through technical audits and reporting
Nigerian Independent System Operator (NISO) – www.niso.org.ng
System Operation and Electricity Market Administration
- Operate and manage the national power system and grid dispatch
- Maintain system stability, reliability, and frequency control
- Administer wholesale electricity market operations
- Register market participants and enforce market rules
- Conduct energy accounting, billing, and settlement
- Ensure transparent, non-discriminatory access to the transmission system
Transmission Company of Nigeria (TCN) – tcn.org.ng
Transmission Infrastructure Ownership and Development
- Own and maintain national electricity transmission assets
- Plan, develop, and expand transmission infrastructure
- Implement approved transmission investment projects
- Maintain transmission facilities in line with safety and reliability standards
- Support system operations through asset availability and performance
- Coordinate with NISO on grid capacity and expansion requirements
Rural Electrification Agency (REA) – rea.gov.ng
Rural and Off-Grid Electrification
- Implement federal rural electrification programmes
- Promote electricity access in unserved and underserved communities
- Develop and support off-grid and mini-grid solutions
- Manage rural electrification funding mechanisms
- Facilitate private sector participation in rural electrification
- Advance renewable and decentralized energy deployment
State Electricity Regulatory Authorities (SERAs)
Intrastate Electricity Regulation and Market Oversight
Under the Electricity Act 2023, States are empowered to establish State Electricity Regulatory Authorities to regulate intrastate electricity activities within their respective jurisdictions.
State Electricity Regulatory Authorities are responsible for:
- Regulating electricity generation, distribution, supply, and trading within state boundaries
- Issuing, modifying, suspending, and revoking licences for intrastate electricity operations
- Setting and approving tariffs for intrastate electricity services
- Establishing and enforcing technical, safety, and service-quality standards applicable at state level
- Protecting electricity consumers and resolving intrastate disputes
- Promoting competition, private investment, and sustainable electricity markets within the State
Where a State has not established a State Electricity Regulatory Authority, the Nigerian Electricity Regulatory Commission (NERC) continues to exercise regulatory authority within that State, in accordance with the Electricity Act 2023.
Summary
The Electricity Act 2023 strengthens federal electricity sector governance by clearly separating policy, regulation, system operation, market administration, infrastructure ownership, safety enforcement, and access functions. This role clarity supports regulatory certainty, system reliability, investor confidence, and sustainable sector growth.