‘Power, Law and the Courts’: NERC Trains Judges As 16 States Take Control of Electricity Markets

●  Who-said-what at the first regional Seminar the commission convened for judges of the Lagos State High Court

Nigeria’s electricity sector entered a new legal era on Monday as the Nigerian Electricity Regulatory Commission convened judges of the Lagos State High Court for a specialized seminar on the rapidly changing power industry.

NOP NIGERIA reports that the engagement, themed ‘Nigeria’s Electricity Market in Transition: Law, Regulation and the Courts,’ is the first in a series of regional trainings NERC will hold to deepen judicial understanding of the sector.

Chairman of NERC, Dr. Musiliu Oseni, told the gathering that the Commission has now transferred electricity market oversight to 16 states across the country. The move, he said, has ushered in “a new era of multi-level regulation.”

“The objective is to ensure that My Lords are familiar with the intricacies and technical nature of the power sector,” Dr. Oseni said in his opening address. “We look forward to engaging with you and sharing deeper insights into an industry that is critical to Nigeria’s economic development.”

The shift means that for the first time, state governments now have direct regulatory authority over electricity generation, transmission and distribution within their territories, alongside the federal regulator.

Legal experts say this decentralization will trigger a wave of new cases in state high courts — from tariff disputes and licensing issues to consumer rights and regulatory enforcement.

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Representing the Attorney General of Lagos State and Commissioner for Justice, Mr. Lawal Pedro, SAN, the Solicitor-General of Lagos State, Hameed Oyenuga, commended NERC for the initiative.

He noted that the seminar provides “a valuable platform for judges to engage with stakeholders in the electricity industry,” and will help ensure judicial decisions “continue to support, rather than impede the ongoing power sector reforms.”

The Lagos State Government has been one of the early movers in the decentralization push, and stakeholders believe the judiciary will play a decisive role in how smoothly the transition works.

Also speaking, Justice Atinuke Ipaye, Administrative Judge of the Lagos Judicial Division, represented the Chief Judge of Lagos State, Justice Kazeem Alogba.

Justice Ipaye encouraged participants to “take full advantage of the seminar by engaging actively with resource persons and seeking a deeper understanding of the evolving electricity landscape.”

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She stressed that as the courts are often the final arbiters in commercial and regulatory disputes, a strong grasp of sector technicalities is now essential.

The seminar featured technical presentations from NERC’s top officials aimed at demystifying complex industry issues for the bench.

NERC Commissioner for Legal, Licensing and Compliance, Dafe C. Akpeneye, delivered a paper on _‘Transitioning into a Decentralised Electricity Sector: Legal and Regulatory Perspectives.’_

He outlined the constitutional amendments and new laws that enabled states to take over electricity regulation, and the legal risks and opportunities that come with overlapping federal and state jurisdiction.

In his presentation, NERC Vice Chairman, Dr. Yusuf Ali, addressed _‘Tariff Regulation in a Decentralised Electricity Market.’_

Dr. Ali explained how tariffs will now be set, reviewed and challenged in a system where both federal and state regulators have roles, and how courts will be called upon to balance investor confidence with consumer protection.

Participants were taken through case studies on power purchase agreements, stranded investments, metering disputes, and enforcement actions — areas that are expected to dominate court dockets in the coming years.

Judges asked questions on the technical basis for tariff calculations, the limits of state regulatory powers, and how to handle disputes between distribution companies and state regulators.

NERC officials emphasized that an informed judiciary is key to attracting the private investment needed to close Nigeria’s electricity gap.

With an estimated 80+ million Nigerians still lacking reliable power, the Commission said legal certainty is as important as new infrastructure.

The Lagos seminar is expected to be replicated in other regions as NERC seeks to build judicial capacity nationwide ahead of more states taking over their markets.

For Lagos, Nigeria’s commercial nerve center, the stakes are particularly high. The state accounts for a significant share of national electricity demand and has ambitious plans for embedded generation and independent power.

Stakeholders at the event agreed that courts that understand the sector can help prevent regulatory confusion and protect reforms from being stalled by litigation.

Dr. Oseni closed by reiterating NERC’s commitment to continuous engagement with the judiciary. “An efficient electricity market requires not just good policy, but good interpretation of that policy,” he said.

As Nigeria pushes to decentralize power and attract capital, the message from Lagos was clear: the law will shape the speed, fairness, and success of the country’s electricity transition.

NOP NIGERIA