At NERC Judges’ Seminar, Kekere-Ekun Says Power Sector Undergoing Transformation

• Fagbemi: Ongoing reforms hold immense promise for attracting investment

•NERC chairman lists sector gains

Emmanuel Addeh in Abuja

The Chief Justice of Nigeria (CJN), Justice Kudirat Kekere-Ekun, yesterday said Nigeria’s electricity sector was undergoing a significant transformation driven by constitutional amendments, legislative reforms and evolving regulatory structures, with far-reaching implications for the courts.

Kekere-Ekun, who is also Chairman, Board of Governors, National Judicial Institute (NJI) spoke at the opening ceremony of the ‘Seminar on Legal Issues in the Regulation of the Electricity Sector for Judges’, organised by NJI in collaboration with the Nigerian Electricity Regulatory Commission (NERC) in Abuja.

She said the engagement was convened at a critical juncture in the evolution of the electricity sector, marked by far-reaching regulatory reforms, rapid technological developments and an increasing demand for judicial clarity and coherence in the interpretation and application of electricity laws.

According to the CJN, legislative reforms, policy innovations, increased private sector participation and the progressive decentralisation of regulatory authority to state-level institutions have significantly expanded the complexity of legal questions now coming before the courts.

“The Nigerian electricity sector, as we are all aware, is undergoing profound transformation. This transformation is being driven by legislative reforms, policy innovations, increased private sector participation, and the progressive decentralisation of regulatory authority to State-level institutions.

“These developments have significantly expanded the complexity of legal questions brought before our courts, making judicial familiarity with sector-specific regulations and practices not merely desirable, but indispensable. The judiciary, therefore, bears a critical responsibility to interpret statutes, review regulatory decisions, and resolve disputes in a manner that promotes legal certainty, economic efficiency, and public confidence in the justice system,” she pointed out.

Kekere-Ekun stressed that judicial officers play a pivotal role in interpreting the provisions of the electricity Act, reviewing regulatory actions and providing oversight to ensure that regulatory bodies operate strictly within the bounds of their statutory mandates.

The CJN further noted that the constitutional empowerment of states to enact their own electricity laws and establish local regulatory authorities has added new layers of complexity to the legal landscape.

She said courts are increasingly being called upon to determine the scope of federal and state authority, reconcile competing regulatory frameworks and address potential jurisdictional overlaps arising from the emergence of sub-national regulation.

“Increasingly, our courts are called upon to determine the scope of federal and state authority, reconcile competing regulatory frameworks, and ensure fidelity to the principle of legality. In this context, judicial clarity, consistency, and sound reasoning are imperative.

“Capacity-building programmes such as this seminar are therefore invaluable, as they equip judges with the analytical tools and sectoral insight required to navigate these emerging challenges with confidence and precision,” she explained.

Kekere-Ekun underscored the importance of judicial oversight in matters of safety, reliability and quality of service in the electricity sector, noting that operational failures by electricity providers could result in severe economic disruption, personal injury and loss of life.

“Issues such as ultra vires action, legitimate expectation, procedural fairness, and the judicial review of delegated legislation are central to the adjudication of electricity-related disputes. Judicial vigilance is essential to ensure that regulatory agencies act within the limits of their lawful authority, striking an appropriate balance between efficient sector management and the protection of constitutional rights and equitable outcomes,” she said.

In his remarks, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, said ongoing electricity-sector reforms hold immense promise for attracting investment and strengthening Nigeria’s electricity market.

He said the seminar was taking place at a pivotal moment following constitutional and legislative reforms that have fundamentally reshaped the regulatory landscape of the electricity sector.

He highlighted that the new electricity act has empowered states to make laws for the generation, transmission and distribution of electricity within areas covered by their respective state electricity grids.

According to him, this constitutional development laid the foundation for a decentralised and more responsive electricity governance framework, repealed the former electricity sector legislation and ushered in a modern, flexible and investment-friendly legal framework for Nigeria’s electricity sector.

“The Act establishes a comprehensive architecture for decentralisation of regulatory authority, the creation of state electricity markets and regulators, and a clear demarcation of federal and subnational responsibilities across the electricity value chain.

“It further strengthens consumer protection, promotes healthy competition and enhances regulatory certainty throughout the sector,” he added.

The Attorney General emphasised the critical role of the judiciary in the reform process and the federal government’s commitment to electricity sector reform and institutional support.

He added that the federal government would continue to work with states, regulators and other stakeholders to ensure that the reforms translate into improved electricity supply.

In his welcome address, the Chairman of NERC, Dr. Musiliu Oseni, listed gains recorded in the electricity sector as part of ongoing reforms.

Oseni said the Nigerian Independent System Operator (NISO)  was created from the Transmission Company of Nigeria (TCN) to ensure transparency in grid management and operation, enhance grid operations and improve investor confidence.

He disclosed that one of the significant outcomes of the separation was the successful test synchronisation of the Nigerian grid with other West African countries through the West African Power Pool (WAPP), adding that final synchronisation is being expected.

The NERC chairman also said free distribution of prepaid meters to currently unmetered customers has fully commenced, in fulfilment of a promise made by the President. According to him, the commission has intensified oversight of the Supervisory Control and Data Acquisition (SCADA) project aimed at addressing recurring incidents of grid collapse.

Also speaking, the Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, said the National Assembly remains committed to strengthening Nigeria’s electricity sector through legislative reforms and oversight.

“As lawmakers, our mandate is to foster reforms through constitutional amendments, the enactment of the Electricity Act 2023 and the ongoing amendments to the Act,” Abaribe said.

He noted that the reforms are designed to boost electricity supply, integrate renewable energy, promote competition and reduce disputes between federal, state and private sector actors.

“The Electricity Act 2023 consolidates and modernises the legal framework of the sector, including clear provisions for structured dispute resolution mechanisms in electricity-related matters,” he added.

Abaribe said emerging conflicts in the decentralised electricity market underscore the need for robust legal interpretation and regulatory clarity.

“You supply electricity, a subnational entity takes it and refuses to pay, claiming independence. These are the kinds of issues the judiciary will increasingly have to address,” he said, citing recent cases involving state-licensed distribution entities and the national grid.

He added that the Senate is working on amendments to the Electricity Act to address critical gaps, including enhanced penalties for infrastructure vandalism and improved coordination between federal and state regulators.

“Your insights as judges will be crucial to interpreting complex regulatory instruments, contracts and tariff structures, so that we can reduce disputes, improve stability and build a more robust electricity market,” Abaribe said.

The Minister of Power, Bayo Adelabu, represented by the Director of Distribution, Mustapha Baba Umara, said the judiciary plays a stabilising role in the electricity market by providing predictability and credibility to the legal and regulatory framework.