NERC urges investors to fund large-scale power projects

The Nigerian Electricity Regulatory Commission (NERC) has urged investors to take advantage of existing regulatory frameworks to finance large-scale electricity projects, as the Federal Government seeks to improve power supply and expand access to reliable electricity across the country.

The commission said its regulatory instruments were designed to support bankable investments, attract private capital and promote sustainable growth in the electricity market.

NERC Chairman, Dr Musiliu Oseni, made the call through the commission’s Director of Economic Regulation, Abba Terab, during a panel session at the 32nd Nigerian Economic Summit in Abuja.

The commission, in its official X account on Thursday, stated that the discussion focused on the theme, “Power Growth: Reliable Electricity for Industry and Prosperity”.

Terab said the commission had established regulatory frameworks to facilitate viable transactions and create investment opportunities across the electricity value chain.

He explained that the Federal Government was liberalising the sector through the Electricity Act 2023 and supporting regulations issued by NERC, in line with its Vision 30:30:30 target.

The reforms include promoting decentralised electricity supply models, particularly embedded generation, which allows electricity to be produced closer to the communities, businesses and industries that need it.

The approach is expected to expand investment opportunities beyond conventional grid-based supply and improve electricity access for commercial and residential customers.

Other panellists highlighted the importance of regulatory certainty, gas infrastructure and commercial discipline in building a financially sustainable electricity market.

The Managing Director of Abuja Electricity Distribution Company, Chijioke Okwuokenye, said regulatory support was essential for initiatives such as embedded generation and net billing arrangements, which could accelerate renewable energy adoption.

Net billing allows eligible customers who generate electricity, including through renewable energy systems, to receive credits or payments for surplus power supplied to the grid, subject to applicable regulations.

Managing Director of Elektron, Deen Solebo, highlighted efforts to strengthen gas-to-power infrastructure, noting that medium-scale power plants could serve specific geographical areas and groups of customers more efficiently.

Such arrangements could provide alternative or complementary sources of electricity for industrial and commercial users seeking more dependable power to sustain operations.

The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, stressed the need for a commercially viable electricity market in which suppliers deliver reliable power and customers pay for the electricity they consume.

He noted the importance of addressing commercial challenges that undermine the sector, particularly unreliable supply, which increases production costs, and poor payment discipline, which weakens the financial position of electricity providers.

The panel was moderated by Jumoke Delano, Managing Consultant at Competence Builders International.

Nigeria’s electricity sector continues to face challenges, including inadequate supply, infrastructure constraints and high operating costs for businesses that depend on alternative power sources.

The Electricity Act 2023 provides a framework for greater participation by state governments and private operators in electricity markets, creating opportunities for decentralised generation and distribution, subject to applicable regulatory requirements.

The Nigerian Economic Summit was organised by the Nigerian Economic Summit Group to promote economic reforms and support the development of an open, inclusive, sustainable and globally competitive economy driven by the private sector.