The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, has said that Nigeria’s persistent electricity challenges are beyond generation, transmission, and distribution deficits, stating that they stem from a deeper “market problem” requiring coordinated intervention.

Speaking at the inauguration of the Forum of Nigerian Electricity Regulators (FoNER) yesterday, Oseni cautioned against what he termed a reductionist view of the sector’s difficulties, insisting that the key issue is the inability of the electricity market to operate sustainably.

Highlighting the structural challenges in the sector, the NERC chairman warned against narrow interpretations of the industry’s problems, noting that the core issue lies in market sustainability rather than isolated constraints in generation, transmission, or distribution.

“The challenge facing our industry is often reduced to a specific segment of the value chain: generation, transmission or distribution problem. However, this reductionism is misleading; the key issue is that we have an electricity market problem,” he said.

He added that the critical question is not the volume of electricity generated, but how effectively the market can function to deliver reliable power and ensure long-term sustainability.

Oseni stated: “The main question is not how much power can we generate. Rather, the key question is: how can our market operate sustainably?”  He urged regulators to adopt a more coordinated approach to prevent regulatory arbitrage by market participants and ensure that reforms deliver economic value.

“We must work collaboratively to avoid regulatory arbitrage by the operators. I charge all of us to carry out this mandate with the highest sense of responsibility,” he said.

He positioned the forum as a central platform to deepen coordination across federal and state regulators and address what he described as a fundamental “electricity market problem” in the country.

Oseni said the creation of the forum marks a deliberate effort to align regulatory frameworks, strengthen consumer protection, and unlock investment in Nigeria’s power sector.

The establishment of FoNER comes amid ongoing efforts to stabilise Nigeria’s electricity sector, which continues to grapple with liquidity constraints, infrastructure deficits, and regulatory fragmentation across jurisdictions.

“Electricity is the oxygen for economic growth and prosperity. Unfortunately, our industry is fraught with varying challenges that require effective coordination and synergy among the captains of the industry,” he said.