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.

• Fed Govt incurs ₦358.32b subsidy obligation

The Nigerian Electricity Regulatory Commission (NERC) has said Togo, Republic of Benin and Niger Republic failed to pay $12.66 million electricity bill in the First Quarter of 2026 Q1 2026.
Of the $17.48million bill that was issued to them, the three international customers, remitted $4.84 million, being 27.57 per cent for the energy the electricity Generation Companies (GenCos) supplied them in the period under review.

This was made known in the 2026 Q1 Report the commission issued yesterday.
NERC said the “remittances made by bilateral customers (domestic and international) and special customers for invoices issued in 2026/Q1 by the MO: The three international bilateral customers being supplied by GenCos in the NESI made a payment of $4.82 million against the cumulative invoice of $17.48 million issued by the MO for services rendered in 2026/Q1, translating to a remittance performance of 27.57 per cent.”

According to the report, the domestic bilateral customers made a cumulative payment of ₦5,816.28 million against the invoice of ₦6,122.35 million issued to them the MO for services rendered in 2026/Q1, translating to 95.00 per cent remittance performance.

NERC added that during Q1 2026, three international and nine domestic bilateral customers made payments of $6.64 million and ₦2,589.07 million, respectively, towards outstanding MO invoices from previous quarters.

In the breakdown, the report said specifically, the MO received a total of $4.05 million from Société Béninoise d’Energie Electrique (SBEE), comprising payments for Ughelli ($3.28 million) and Paras ($0.77 million).

NERC also said $1.87 million was received from Mainstream – Société Nigérienne d’Electricité (NIGELEC), and $0.72 million from Paras – Compagnie Energie Electrique du Togo (CEET).

According to the report, the special customer (Ajaokuta Steel Co. Ltd and the host community) did not make any payment towards the ₦676.88 million (NBET) and ₦189.38 million (MO) invoices received in 2026/Q1.

NERC stressed that this continues a longstanding trend of non-payment by this customer, and the Commission has communicated the need for intervention on this issue to the relevant Federal Government authorities.

In the period under review, the total revenue collected by all DisCos in 2026/Q1 was ₦597.56 billion out of the ₦756.93 billion that was billed to customers.

This, said the report, translates to a collection efficiency of 78.95 per cent.
In comparison, NERC stressed that the total revenue collected by all DisCos in 2025/Q4 was ₦630.93 billion out of the ₦795.06 billion billed to customers, which translated to a 79.36 per cent collection efficiency. This means that at an aggregate level, DisCos recorded a 0.41pp decrease in collection efficiency between 2025/Q4 and 2026/Q1.

On subsidy, the report revealed that due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of ₦358.32 billion, this represents a ₦60.46 billion (-14.44 per cent) reduction in FGN subsidy compared to 2025/Q4 (₦418.79 billion).

The government subsidy, according to NERC, accounted for 51.95 per cent of the total GenCo invoice, which is a 0.08pp decrease compared to 2025/Q4, when the subsidy accounted for 52.03 per cent of the total GenCo invoice.

The report explained that “The key driver of this reduction in FGN subsidy obligation is the decrease in energy offtake of the DisCos by -8.56 per cent between 2025/Q4 and 2026/Q1.”

The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, has underscored the growing impact of Artificial Intelligence (AI) and Machine Learning (ML) in transforming operations across Nigeria’s power sector, particularly within NDPHC’s generation assets.

Speaking during an engagement with the Nigerian Economic Summit Group (NESG), Adighije explained that the integration of advanced digital technologies is significantly improving efficiency, reliability, and performance across the company’s power plants.

According to Adighije, NDPHC has adopted AI-powered predictive maintenance systems that enable engineers and plant operators to detect potential equipment failures before they occur. This proactive approach allows the company to prevent unexpected breakdowns, reduce forced outages, and minimise maintenance-related costs.

She noted that the deployment of AI tools marks a major shift in operational strategy, moving from traditional maintenance models to more intelligent, data-driven systems capable of improving decision-making in real time.

“We have moved beyond preventive maintenance to predictive maintenance,” Adighije said.

She explained that unlike preventive maintenance, which relies on scheduled servicing regardless of equipment condition, predictive maintenance uses real-time data analytics, machine learning algorithms, and sensor-based monitoring to assess equipment health and forecast faults with greater precision.

This technological transition is particularly significant for NDPHC’s fleet of gas-fired turbines and associated balance-of-plant systems, where equipment reliability directly impacts plant output and grid stability. By leveraging AI, plant operators can continuously monitor turbine performance, fuel efficiency, vibration levels, thermal behavior, and component wear, allowing intervention before faults escalate into costly failures.

Adighije emphasised that this innovation is helping NDPHC optimize plant availability, improve generation efficiency, and strengthen the reliability of electricity supply to consumers across the country.

She further stated that as Nigeria continues to modernize its energy infrastructure, the role of emerging technologies such as AI, automation, and digital analytics will become increasingly critical in addressing long-standing challenges in the power sector, including inadequate generation, transmission bottlenecks, technical losses, and system instability.

Industry experts believe AI-driven systems can play a crucial role in enhancing grid stability, improving asset management, reducing operational losses, and supporting the country’s transition toward a more resilient and sustainable energy future. Smart technologies can also improve demand forecasting, load balancing, and dispatch coordination across the electricity value chain.

With growing investments in digital transformation, Nigeria’s power sector is gradually embracing intelligent systems that could accelerate operational excellence, attract investment, and support long-term energy security.

Adighije reaffirmed that innovation will remain central to NDPHC’s strategy as the company seeks to deliver more efficient, reliable, and sustainable electricity generation in line with national development goals.

She noted that for a country with rising electricity demand and an expanding industrial base, technology adoption is no longer optional but essential to ensuring stable and affordable power supply. According to her, AI is rapidly becoming one of the most powerful tools for driving the next phase of growth and modernization in Nigeria’s electricity sector.

NDPHC, established under the National Integrated Power Projects (NIPP), is one of Nigeria’s largest power generation and infrastructure companies, playing a critical role in bridging the country’s electricity supply gap. Beyond generation, NDPHC also serves as a major player in transmission and distribution infrastructure development. Through the NIPP framework, the company has delivered hundreds of transmission projects, including substations, transformers, switchgear installations, and transmission lines aimed at strengthening the national grid. It has also executed numerous distribution intervention projects to improve electricity delivery to homes, businesses, and industrial clusters across Nigeria.