By Charles Pemu 
A major row has erupted in Nigeria’s power sector following the Enugu Electricity Regulatory Commission (EERC)’s decision to slash Band A electricity tariffs from the federally approved N209/kWh to N160/kWh — a move that has sparked resistance from Generation Companies (GenCos), Distribution Companies (DisCos), and top energy analysts.
While EERC’s action has the support of the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN), industry operators say the decision could destabilize the already fragile electricity market, disrupt payments, and deepen liquidity challenges in a sector burdened with over N5 trillion in unpaid debts.
The Association of Nigerian Electricity Distributors (ANED) said the EERC order has triggered unrest across the country, as customers in other states now demand similar reductions — and in some cases, are reportedly refusing to pay until new rates are introduced.
“We sympathize with Nigerians and support the idea of affordable tariffs,” said ANED Executive Director, Barr. Sunday Oduntan. “But the current tariffs reflect economic realities. Slashing them without a concrete subsidy plan is a recipe for collapse.”
Oduntan warned that while subsidies are acceptable in principle, they must be fully funded and transparent. “Unfunded or delayed subsidies erode cash flow and confidence, which is why the industry remains in crisis,” he said.
“You Can’t Regulate What You Don’t Produce” — GenCos Fire Back
The Association of Power Generation Companies (APGC) was even more blunt, accusing EERC and state regulators of regulatory overreach.
“States are regulating the price of a product they neither produce nor understand,” said APGC Executive Director, Dr. Joy Ogaji. “The subsidy they refer to is imaginary. There’s no clear federal policy backing it, no financing structure, and it’s crippling the GenCos’ books.”
She described the Enugu order as “regulatory rascality,” warning it could scare off investors and complicate power purchase agreements already locked in with the Nigerian Bulk Electricity Trading Plc (NBET).
“You cannot build tariff policy on fiction. These documents drive billion-naira investment decisions. Tampering with them arbitrarily is reckless,” Ogaji said.
Call for Wholesale Electricity Market Grows
Amid the chaos, power sector expert Lanre Elatuyi said the time has come for the Federal Government and NERC to launch a competitive wholesale electricity market, overseen by a National Independent System Operator (NISO).
“If subsidies can’t be guaranteed, then allow DisCos to buy a portion of their load directly from the wholesale market,” he said. “NISO should take the lead in designing a framework to transition the sector from central control to competitive, phased liberalization.”
He noted that while state-level regulation is now constitutionally permitted, the market must be underpinned by metering, transparency, reliability, and a clear definition of who bears the sector’s historical liabilities.
“You can’t claim control over assets and abandon the debt. Everyone must share the burden,” Elatuyi concluded.
What’s Next?
As Nigeria’s power sector decentralizes under the Electricity Act, the dispute over who controls pricing, the federal government through NERC or states through newly created commissions like EERC. may escalate further. Without a coordinated national market structure and clear subsidy framework, experts warn that the push-and-pull could worsen supply instability and investor distrust.