This paper seeks to query the powers of the Federal Government of Nigeria (FGN) acting through its agency, the Nigerian Electricity Regulatory Commission (NERC) to issue electricity distribution license to electricity distribution companies and also as regulators of the said companies. The Nigeria electricity industry has suffered major setbacks resulting in its age long truncated growth of electricity generation not exceeding 6, 000 megawatts (mw) even when the country has the capacity of generating more. There are several factors giving rise to the inefficiency in electricity generation in the country. That notwithstanding, this paper will focus on the fact that the expected industry players are not actively involved and discharging their constitutional obligations. Put differently, the FGN is assuming too many powers and too many obligations than it can discharge thereby resulting in the underperformance of its duty of grid generation and transmission. The value chain of electricity is: generation, transmission and distribution. The constitution has carefully delineated these duties to both the FGN and States which are the constitutionally recognized industry players. The FGN is to generate and transmit while the State is to distribute the said electricity to the ultimate consumer. Regrettably, the FGN solely exercises these powers or better still, the State is indolent on its right thereby allowing the FGN to assume too many powers/roles than it can perform. When the States begin to sit up to their responsibilities, there will be a great improvement in the Nigerian Electricity Supply Industry (NESI).
This paper was published in the African Journal of International Energy and Environmental Law, Vol. 4, Issue 4. November, 2020.
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