NERC holds Regional seminar for Judges on electricity market reforms

Judges and critical stakeholders in the Lagos State Judiciary service today began a three-day workshop aimed at deepening the judiciary’s understanding of the evolving legal and regulatory framework governing Nigeria’s electricity market.

The workshop, organised by the Nigerian Electricity Regulatory Commission (NERC), under the aegies of its Regional Seminar for Judges of State High Courts programme, is holding at the Lagos State High Court Annex, Osborne , Ikoyi, Lagos. It has as its theme: “Nigeria’s Electricity Market in Transition: Law, Regulation and the Courts.”

Speaking at the opening session yesterday, the NERC Chairman, Dr. Musiliu Oseni, stressed the need for stronger collaboration with the judiciary to ensure the success of Nigeria’s ongoing electricity market reforms, saying well-informed judicial decisions are critical to sustaining investor confidence, protecting consumers and advancing the country’s power sector.

Dr. Oseni described electricity as one of the country’s most strategic national priorities after security, noting that virtually every sector of the economy depends on reliable electricity. He explained that the seminar was designed to provide judicial officers with a deeper understanding of the technical, commercial and legal issues shaping the electricity sector as Nigeria implements far-reaching reforms introduced under the Electricity Act 2023.
Oseni noted that following the constitutional amendment of March 2023 and the enactment of the Electricity Act, Nigeria’s electricity industry has entered a new phase of decentralisation, allowing states to establish and regulate their own electricity markets.

He emphasised that the objective of the seminar was not to influence judicial independence but to familiarise judges with the technical nature of the electricity industry so they can better appreciate the complexities involved when adjudicating electricity-related disputes.

“The intention is not to interfere with the course of justice but to expose My Lords to the intricacies of the electricity sector. Better understanding of the industry will ultimately support sound judicial decisions that strengthen the sector,” he stated.
He disclosed that NERC has already transferred regulatory oversight to 16 states, describing the development as a major milestone in Nigeria’s electricity reform agenda.

According to him, the decentralisation of electricity regulation will improve consumer protection, bring regulatory institutions closer to electricity users, enable quicker resolution of customer complaints and allow tariff decisions to reflect local economic realities.

While acknowledging the benefits of the reforms, the NERC Chairman said they have also introduced fresh legal and regulatory challenges that require the judiciary’s understanding.
Dr. Oseni cautioned that the transition introduces new legal complexities, explaining that disputes in the electricity sector would no longer be limited to consumers, operators and the national regulator but could also involve state electricity regulators, multiple regulatory agencies and electricity market participants operating across different jurisdictions.

“As we speak today, the Commission has already issued transfer orders to 16 states, enabling them to assume regulatory oversight of their respective electricity markets,” he disclosed.
Oseni cited a 2016 court judgment which, according to him, prevented the Commission from fully exercising its regulatory powers and contributed to electricity subsidy liabilities estimated at ₦520 billion in 2019, equivalent to nearly ₦2 trillion at current exchange rates.

The NERC boss further disclosed that the seminar would feature presentations by Nigerian and international electricity experts who would share practical experiences, analyse previous judicial decisions affecting the sector and engage participants in discussions on emerging legal issues arising from Nigeria’s electricity market reforms.
He encouraged judges to actively participate in the sessions by asking questions and sharing perspectives, expressing confidence that the interaction would foster stronger collaboration between regulators and the judiciary.

Delivering a goodwill message on behalf of the Chief Judge of Lagos State, Honourable Justice Kazeem Aloba, the Administrative Judge of Lagos Division, Honourable Justice Atinuke Ipaye welcomed the Commission’s initiative, describing it as timely and necessary.
Justice Ipaye observed that electricity remains one of Nigeria’s most critical development issues, affecting homes, businesses and public institutions alike.

“There is hardly any Nigerian who is not affected by electricity, whether through generation, transmission, distribution, metering or payment. The sector touches every aspect of our daily lives,” she remarked.
She noted that the liberalisation of the electricity industry has introduced new market participants, including generation companies (GenCos) and distribution companies (DisCos), making continuous judicial education necessary to keep pace with the sector’s evolution.
She urged judges to take advantage of the three-day seminar to deepen their understanding of the industry’s legal and commercial realities, saying such knowledge would improve the quality of judicial decisions in electricity-related disputes.

The Regional Seminar for Judges of State High Courts will feature technical presentations, panel discussions and case studies led by Nigerian and international experts as part of NERC’s efforts to strengthen judicial capacity and enhance collaboration between the judiciary and electricity regulators in support of Nigeria’s ongoing electricity market reforms.
The programme forms part of NERC’s broader efforts to deepen institutional collaboration with the judiciary as Nigeria continues its transition towards a decentralised and more competitive electricity market.