164
M. U. Ukponu et al.
the States.
109 To forestall such occurrences for a secured energy future,
the Federal and State Governments must find ways to collaborate, in line
with the concept of federalism, to ensure that the purpose of achieving a
rapid transition to and development of RE is realized.
Regulation of any sector is usually an avenue for a government to
generate revenue that can be channelled towards economic and social
infrastructure development. Due to the conflict of electricity laws and
the usurpation of their powers to promote and regulate electricity within
their respective domains, the States are being denied a viable avenue to
generate revenue to inject into the development of economic and social
infrastructure, including electricity. The States become less economically
viable due to the inability to appropriately regulate electricity resources
within their respective territories. This also leaves NERC with the uphill
task of promoting and regulating energy throughout Nigeria. It is difficult for NERC to substantially monitor energy development in every
urban and rural community in a vast country like Nigeria, and this
accounts for the slow pace of electricity development in Nigeria.
Even as Lagos State decided to exercise its powers under the CFRN to
regulate off-grid electricity in rural areas where NERC has claimed regulatory authority, the conflict of laws would create unnecessary bureaucracies for electricity investors and operators. They may be required to
secure licenses from both NERC and the State electricity agencies before
they can embark on electricity development and operations. For example,
NERC is expressly empowered to regulate all stakeholders in mini-grid
power, including institutions and agencies of the States that interact
with mini-grid operators.
110 This now becomes a case of double regulation. Especially for investors, double regulation creates uncertainties
about the regulatory framework as Federal and State electricity laws could
require them to perform two opposite obligations. Regulatory uncertainty within a sector tends to scare away investments, and that is a major
revenue loss for both the Federal and State Governments.
109 There is an unconfirmed report that in the early 2000s, relying on the EPSRA as the
regulators of NESI, NERC gave an ultimatum to the Rivers State Government to feed all
electricity generated from its gas turbine to the National Grid.
110 Mini-Grid Regulations, s 4.
M. U. Ukponu et al.
the States.
109 To forestall such occurrences for a secured energy future,
the Federal and State Governments must find ways to collaborate, in line
with the concept of federalism, to ensure that the purpose of achieving a
rapid transition to and development of RE is realized.
Regulation of any sector is usually an avenue for a government to
generate revenue that can be channelled towards economic and social
infrastructure development. Due to the conflict of electricity laws and
the usurpation of their powers to promote and regulate electricity within
their respective domains, the States are being denied a viable avenue to
generate revenue to inject into the development of economic and social
infrastructure, including electricity. The States become less economically
viable due to the inability to appropriately regulate electricity resources
within their respective territories. This also leaves NERC with the uphill
task of promoting and regulating energy throughout Nigeria. It is difficult for NERC to substantially monitor energy development in every
urban and rural community in a vast country like Nigeria, and this
accounts for the slow pace of electricity development in Nigeria.
Even as Lagos State decided to exercise its powers under the CFRN to
regulate off-grid electricity in rural areas where NERC has claimed regulatory authority, the conflict of laws would create unnecessary bureaucracies for electricity investors and operators. They may be required to
secure licenses from both NERC and the State electricity agencies before
they can embark on electricity development and operations. For example,
NERC is expressly empowered to regulate all stakeholders in mini-grid
power, including institutions and agencies of the States that interact
with mini-grid operators.
110 This now becomes a case of double regulation. Especially for investors, double regulation creates uncertainties
about the regulatory framework as Federal and State electricity laws could
require them to perform two opposite obligations. Regulatory uncertainty within a sector tends to scare away investments, and that is a major
revenue loss for both the Federal and State Governments.
109 There is an unconfirmed report that in the early 2000s, relying on the EPSRA as the
regulators of NESI, NERC gave an ultimatum to the Rivers State Government to feed all
electricity generated from its gas turbine to the National Grid.
110 Mini-Grid Regulations, s 4.