Stakeholders in Nigeria’s power sector have called for innovative electricity pricing frameworks and targeted subsidy models to support sustainable energy supply as states take on greater regulatory responsibilities.
Stakeholders in Nigeria’s electricity sector have advocated new pricing frameworks and alternative subsidy models to ensure sustainable power supply as states increasingly assume responsibility for regulating and developing their electricity markets.
The call was made during a stakeholder workshop on Electricity Price Reforms and Sub-National Regulation under the PACE Project: Renewable Energy Transition Partnership (RETP), held in Enugu.
The workshop was organised by the International Centre for Energy, Environment and Development in collaboration with the Enugu State Electricity Regulatory Commission and supported by the Foreign, Commonwealth and Development Office Partnership for Agile Governance and Climate Engagement (PACE).
The event brought together policymakers, regulators, electricity operators, investors, development partners and industry experts to examine electricity pricing and subsidy implementation within Nigeria’s evolving decentralised electricity market.
Speaking at the workshop, Chijioke Okonkwo described the discussions as timely, noting that Nigeria is transitioning from a centrally regulated electricity system to a decentralised framework that empowers states to manage their own electricity sectors.
According to him, electricity pricing remains a key factor in economic growth, industrial development and consumer welfare, while tariff structures influence investment decisions, operational efficiency and long-term sector sustainability.
Okonkwo said participants were examining how federal government interventions in electricity pricing affect state-level market development and the implementation of cost-reflective tariffs.
He argued that state regulators are better positioned to understand local realities and design regulations that respond to the specific needs of electricity consumers.
The EERC chairman added that cost-reflective tariffs would improve investor confidence, attract long-term investments and support sustainable service delivery across the sector.
Also speaking, Joseph Ter-Jer said legal and regulatory frameworks were already being developed to support the ongoing reforms.
He noted that outcomes from the workshop could help shape policies at both federal and state levels while creating pathways for the gradual removal of inefficient electricity subsidy regimes.
“We want an electricity market that operates efficiently, just as the telecommunications sector evolved through competition and innovation,” he said.
For his part, Iguwo Ukwu stressed that electricity generation and distribution involve significant costs and that sustainable markets require mechanisms that guarantee cost recovery.
He advocated targeted subsidies for vulnerable consumers rather than broad-based subsidy programmes.
In a goodwill message, Peter Mbah said recent electricity reforms had opened new opportunities for states to expand energy access, improve service delivery, attract investment and stimulate economic growth.
Represented by Chidiebere Onyia, the governor urged stakeholders to embrace innovation and collaboration in developing practical solutions for reliable, affordable and sustainable electricity supply.
Also addressing participants, Ifeanyi Ugwuoke said Nigeria continues to face significant energy poverty challenges, adding that decentralisation under the Electricity Act presents an opportunity to address longstanding issues in generation, transmission, distribution and pricing.
The workshop highlighted growing consensus among industry stakeholders that future electricity reforms must balance affordability, investor confidence and long-term sector sustainability.
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