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DocumentaryEditorialNewsPower

NERC Chairmanship impasse: Fears of regulatory capture by perceived political actors

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Last updated: Thursday, August 21, 2025 9:17:36 AM
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… legal vacuum from Senate recess could undermine tariff, licensing decisions

 

Op-Ed by Adetayo Adegbemle, Executive Director of PowerUp Nigeria

 

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Engineer Abdullahi Ramat’s dramatic arrival at the NERC headquarters on August 8, 2025, to assume office as Chairman-designate of the Nigerian Electricity Regulatory Commission—reportedly flanked by political supporters and security personnel—was not just a leadership transition but a constitutional crisis unfolding in real time.

His entry, perceived as regulatory capture orchestrated by shadowy political figures, signals that NERC—the crucial referee—may now be compromised.

This controversial installation of Engr. Ramat, as Chairman of NERC, has sent shockwaves through the nation’s power sector, revealing deep fractures in governance and threatening to shatter fragile investor confidence.

His forceful takeover, displacing acting leadership despite lacking Senate confirmation and occurring after a retracted presidential directive, blatantly violates the NERC Act (2005).

This act mandates legislative approval for such appointments, making Ramat’s resumption an assault on institutional integrity.

The presidency’s subsequent clarification, stating his nomination remained “subject to Senate confirmation” with the acting chairman retaining authority until then, only highlighted the illegitimacy of the power grab.

With the Senate recessed until late September, the vacuum invites legal chaos, potentially nullifying future critical decisions on tariffs or licenses.

The reaction from investors and industry stakeholders has been one of undisguised alarm.

An anonymous executive characterized the takeover as “not just illegal—it’s dangerous,” emphasizing the erosion of confidence for those with “billions at stake.”

This sentiment resonates deeply.

International partners view independent, rule-based regulation as non-negotiable for capital deployment, especially in a sector grappling with a severe liquidity crisis and the ever-present threat of grid collapse.

Ramat’s entry, perceived as regulatory capture orchestrated by shadowy political figures, signals that NERC—the crucial referee—may now be compromised.

For the Nigerian Electricity Supply Industry (NESI), heavily reliant on foreign investment, this incident risks transforming the sector into a politically toxic asset class, freezing urgently needed investments in generation and distribution infrastructure.

While Ramat, aged 39, brings credentials suggesting potential for modernization—a PhD in Strategic Management, experience with blockchain-driven revenue systems, and energy-efficient initiatives from his tenure as Ungogo LGA chairman—his legitimacy is fatally undermined.

His lack of direct power-sector experience is compounded by the reliance on political patronage rather than due process for his installation.

His popular pledge to compel DisCos and GenCos to “do the right thing” and end consumer exploitation through opaque billing resonates with a frustrated public.

However, without confirmed authority, any enforcement actions risk judicial nullification, further delaying essential tariff reforms and consumer protections.

Internally, NERC staff reportedly resent the “forceful takeover,” fracturing cohesion and crippling ongoing projects.

The commission’s core function—impartial arbitration between consumers, generators, and distributors—is now severely compromised by the chairman’s contested legitimacy.

Restoring stability demands decisive action.

First, President Tinubu must publicly and unequivocally reaffirm that Ramat remains only a nominee until Senate confirmation, distancing the administration from this constitutional overreach.

Second, the Senate must expedite Ramat’s confirmation hearing upon its return on September 23, subjecting his competence and commitment to NERC’s statutory independence to rigorous scrutiny.

Finally, Ramat himself must immediately convene investors, consumer advocates, and utilities, pledging adherence to proper governance and outlining a transparent agenda to rebuild trust.

In essence, Nigeria’s power sector stands on a precipice.

Ramat’s academic promise is overshadowed by the blatant politicization of his accession represents a recurring malaise crippling NESI.

Without an immediate course correction, this crisis will paralyze regulatory progress and broadcast a damning verdict: that Nigeria’s institutions remain subservient to raw political will.

As one industry leader starkly observed, “NERC is a regulator, not a battleground.”

The resolution of this impasse will either catalyze long-overdue reform or entrench a decay that investors simply cannot afford to ignore.

The lights of Nigeria’s economic future flicker uncertainly in the balance.

– Adetayo Adegbemle is an Executive Director of PowerUp Nigeria is a leading power sector advocacy organization championing universal access to sustainable energy and resilient infrastructure. Through policy engagement, community empowerment, and partnerships, we strive to eradicate energy poverty and drive equitable development nationwide.

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