5 Role of Law in the Energy Transitions in Africa …
167
5.4.1.1 Enacting a Separate Renewable Energy Legislation
The main justification for the enactment of a RE law separate from
EPSRA would be that EPSRA is heavily concentrated on the regulation of non-REs. It would be cumbersome for EPSRA, a single law,
to simultaneously regulate both REs and non-REs in detail. Although
ESPRA mandates NERC to regulate and promote Nigeria’s vast energy
sources, including REs,
114 EPSRA places heavy reference on the development and regulation of non-RE sources and only makes scant provisions
for RE regulation which are not far-reaching enough. However, NERC
largely exercises its competence to regulate RE through subsidiary regulations.
115 These subsidiary legislations are susceptible to sudden changes
by NERC as they are not required to have the input or pass through
the legislative crucibles of the National Assembly law-making process in
order to become effective. These sudden changes are viewed as regulatory and investment risks by private investors as they create a sense of an
unfriendly investment climate and regulatory uncertainty, making them
sceptical about investing in electricity development, especially REs.
116
Without a distinct RE legislation, regulatory risks and uncertainties will
continue to make Nigeria an investor’s landmine as risks of abrupt
discontinuity of RE incentives will inhibit investments as witnessed in
Australia’s wind energy sub-sector.
117 Therefore, a distinct RE legislation
would be needed to address this regulatory imbalance.
118
There are clear advantages of having a separate RE law that harmonizes
different RE objectives and targets and incorporates relevant incentives to
promote the growth of RE investments in the country. Such a law could
take the form of framework legislation which sets measurable targets and
114 Ifenyinwa Ufondu and Ike C Ibeku, ‘The Legal Framework for Renewable Energy in Nigeria’
(Lexology, 23 September 2019), https://www.lexology.com/library/detail.aspx?g=5c0acacf-88a247ae-a1a2-dd5c29009cd6.
115 NERC is empowered to make regulations for all matters covered under the Act. See EPSRA,
s 96 (1) and (2).
116 Tatjana Tupy (n 6), 8 and 12; Shayle Kann, ‘Overcoming Barriers to Wind Project Finance
in Australia’ (2009) 37 Energy Policy 3139, 3144–3145.
117 Kann (n 116), 3144–3145.
118 Lawrence Atsegbua, Vincent Akpotaire, and Folarin Dimowo, Environmental Law in Nigeria:
Theory and Practice (Ambik Press, 2010) 290.
167
5.4.1.1 Enacting a Separate Renewable Energy Legislation
The main justification for the enactment of a RE law separate from
EPSRA would be that EPSRA is heavily concentrated on the regulation of non-REs. It would be cumbersome for EPSRA, a single law,
to simultaneously regulate both REs and non-REs in detail. Although
ESPRA mandates NERC to regulate and promote Nigeria’s vast energy
sources, including REs,
114 EPSRA places heavy reference on the development and regulation of non-RE sources and only makes scant provisions
for RE regulation which are not far-reaching enough. However, NERC
largely exercises its competence to regulate RE through subsidiary regulations.
115 These subsidiary legislations are susceptible to sudden changes
by NERC as they are not required to have the input or pass through
the legislative crucibles of the National Assembly law-making process in
order to become effective. These sudden changes are viewed as regulatory and investment risks by private investors as they create a sense of an
unfriendly investment climate and regulatory uncertainty, making them
sceptical about investing in electricity development, especially REs.
116
Without a distinct RE legislation, regulatory risks and uncertainties will
continue to make Nigeria an investor’s landmine as risks of abrupt
discontinuity of RE incentives will inhibit investments as witnessed in
Australia’s wind energy sub-sector.
117 Therefore, a distinct RE legislation
would be needed to address this regulatory imbalance.
118
There are clear advantages of having a separate RE law that harmonizes
different RE objectives and targets and incorporates relevant incentives to
promote the growth of RE investments in the country. Such a law could
take the form of framework legislation which sets measurable targets and
114 Ifenyinwa Ufondu and Ike C Ibeku, ‘The Legal Framework for Renewable Energy in Nigeria’
(Lexology, 23 September 2019), https://www.lexology.com/library/detail.aspx?g=5c0acacf-88a247ae-a1a2-dd5c29009cd6.
115 NERC is empowered to make regulations for all matters covered under the Act. See EPSRA,
s 96 (1) and (2).
116 Tatjana Tupy (n 6), 8 and 12; Shayle Kann, ‘Overcoming Barriers to Wind Project Finance
in Australia’ (2009) 37 Energy Policy 3139, 3144–3145.
117 Kann (n 116), 3144–3145.
118 Lawrence Atsegbua, Vincent Akpotaire, and Folarin Dimowo, Environmental Law in Nigeria:
Theory and Practice (Ambik Press, 2010) 290.