The Federal Competition and Consumer Protection Commission (FCCPC) has warned that Nigeria’s emerging state electricity markets could struggle to attract investment if states adopt different regulatory frameworks, stressing the need for stronger cooperation among electricity regulators to protect consumers and provide certainty for investors.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, gave the warning on Thursday at a stakeholders’ engagement on consumer protection and regulatory cooperation in Nigeria’s electricity sector in Abuja.

The meeting brought together officials of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA) and several state electricity regulatory commissions following the decentralisation of electricity regulation under the Electricity Act 2023.

The electricity act, signed in 2023, ended decades of exclusive federal control of Nigeria’s electricity sector by empowering states to establish and regulate their own electricity markets once they meet constitutional and regulatory requirements. Since then, several states, including Lagos, Enugu, Plateau and Anambra, have established electricity regulatory commissions as part of efforts to improve electricity supply and attract private investment.

However, stakeholders have repeatedly warned that inconsistent regulations across states could discourage investment, increase compliance costs for operators and create uneven levels of consumer protection.

Consumer confidence

Mr Bello described the Electricity Act as one of the most significant reforms of Nigeria’s electricity sector, saying its success would depend largely on effective collaboration among federal and state regulators.

“The Electricity Act of 2023 represents one of the most significant reforms of Nigeria’s electricity sector in recent years,” he said.

“Beyond creating new opportunities for investment and improved service delivery, it has fundamentally reshaped our regulatory architecture,” he added.

According to him, while states now have greater flexibility to regulate their electricity markets in line with local realities, consumers should enjoy the same level of protection regardless of where they live.

He noted that electricity users are primarily concerned about reliable service and fair treatment rather than the agency responsible for resolving their complaints.

“Consumers experience electricity as one system. When supply is interrupted, or a bill appears incorrect, they are not concerned about which regulator has jurisdiction. They simply expect protection, ensuring that our institutions work seamlessly together in our responsibility and not theirs.”

Mr Bello explained that although NERC regulates the electricity industry, NEMSA enforces technical standards, state commissions oversee intrastate electricity markets, while the FCCPC provides economy-wide consumer protection and competition oversight.

According to him, these responsibilities should complement rather than compete with one another.

“Our objective is to consult, exchange information, support one another’s lawful actions, and ensure consumers receive timely and effective protection,” he said.

The FCCPC boss cited the suspension of the proposed replacement of obsolete Unistar prepaid meters in 2024 as an example of effective collaboration among regulators.

PREMIUM TIMES previously reported that consumer groups raised concerns over plans to replace obsolete prepaid meters amid fears that electricity customers could be forced to bear the cost or be subjected to estimated billing during the process.

Mr Bello said the FCCPC convened discussions involving NERC, NEMSA and electricity distribution companies after the concerns emerged.

The replacement exercise was subsequently suspended pending compliance with regulatory requirements before NERC later issued an order providing a structured framework for replacing faulty and obsolete meters.

“The order guaranteed that consumers would not bear the cost of replacing obsolete meters, would not experience interruption of electricity supply during the replacement exercise, and would not be subjected to estimated billing because of delays in implementation,” he said.

He added: “Those safeguards reflected the principle that consumers should never be disadvantaged because infrastructure has reached the end of its useful life through no fault of their own.”

He noted that the effectiveness of regulation should be measured not only by complaints resolved but also by the number of disputes prevented.

“Strong regulation is not built on institutional rivalry. It is built on cooperation, mutual respect, and a shared commitment to the public interest,” he said.

Investors need certainty

Also speaking, NERC’s Assistant Director and Head of Consumer Protection Department, Anthony Essien, said harmonised regulations would become increasingly important as more states establish independent electricity markets.

He warned that differing regulations across states could complicate investment decisions and discourage investors operating across multiple jurisdictions.

“It would not be easy, especially looking at investors coming in and having different standards across 36 states. But if we come together and foster a unified and well-thought-out effort to bring forward laws, it would further strengthen our mandates across the different states.”

He said the FCCPC has become an important partner in NERC’s consumer complaints mechanism and now participates in the commission’s Consumer Complaints Forum.

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The Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo, described the engagement as timely, saying collaboration with federal regulators would help state commissions strengthen consumer protection.

Similarly, the Chairman of the Anambra State Electricity Regulatory Commission, Frank Nwoye Okafor, cautioned that fragmented regulations could become a major obstacle to investment.

“The biggest nightmare for an investor is trying to figure out 36 different rules. But if we have this sort of coordination, then we start singing from the same hymn sheet,” Mr Okafor said.

The Electricity Act 2023 is regarded as Nigeria’s most far-reaching electricity reform since the power sector was privatised in 2013. By allowing states to regulate intrastate electricity markets, the law seeks to expand electricity access, attract private investment and improve service delivery.

However, as more states establish independent electricity markets, regulators and industry stakeholders say harmonised regulations and coordinated oversight will be critical to maintaining investor confidence, avoiding regulatory fragmentation and ensuring consumers receive the same level of protection regardless of where they live.

NITDA has given government institutions, software developers and technology service providers until the second quarter of 2027 to comply with a new national software quality regime that will make independent testing and certification mandatory before government software can be deployed, in one of the most significant regulatory overhauls of Nigeria’s public sector technology ecosystem.

The enforcement timeline was announced as the National Information Technology Development Agency (NITDA) unveiled the National Software Quality Assurance (SQA) Framework, a new regulatory framework that introduces mandatory third-party software testing, risk-based quality standards and licensing requirements for software testing organisations.

Signed by Kashifu Inuwa Abdullahi, Director-General of NITDA, under the authority of the NITDA Act 2007, the framework establishes national standards governing the design, development, testing and deployment of software across Federal Government institutions, regulated industries and Nigeria’s broader digital economy.

The agency said the phased implementation is intended to allow stakeholders sufficient time to prepare before enforcement begins in the second quarter of 2027.

A key provision of the framework requires all software projects developed for government institutions to undergo independent third-party testing and certification before they can be deployed.

Government software to require independent certification

A key provision of the framework requires all software projects developed for government institutions to undergo independent third-party testing and certification before they can be deployed.

Under the new rules, compliance with the certification process will also become a mandatory requirement for obtaining IT Project Clearance, effectively making software quality assurance a prerequisite for government technology projects.

According to NITDA, the new regime is designed to reduce costly software failures, strengthen cybersecurity, improve the reliability of digital public services and ensure greater value from government investments in information technology.

The agency said the framework seeks to improve public confidence in digital government platforms by ensuring software meets nationally defined standards for quality, security and interoperability before going live.

Software Testing: Three regulatory instruments unified

NITDA said the National Software Quality Assurance Framework consolidates three complementary regulatory instruments into a single national framework.

The National Software Development Guideline introduces structured software development life cycles, mandates secure coding practices based on the Open Web Application Security Project (OWASP), standardises software documentation and requires citizen-facing digital services to comply with Web Content Accessibility Guidelines (WCAG) 2.1 AA.

The National Software Testing Guideline establishes comprehensive testing requirements covering software functionality, cybersecurity, performance under peak demand and interoperability before deployment.

Meanwhile, the Software Testing Organisations Licensing (STOL) Guideline creates a licensing regime for independent Licensed Software Testing Organisations (LSTOs), which will be responsible for evaluating and certifying software before deployment.

According to NITDA, Class A systems, including core banking switches, national identity management platforms and power grid control software, will be subject to the most rigorous testing requirements, including enhanced cybersecurity assessments, penetration testing and specialised evaluation by accredited testing organisations.

Critical national systems face stricter oversight

The framework introduces a risk-based classification model that aligns software quality assurance requirements with the operational risks posed by different applications.

Software will be categorised into Class A for high-risk and critical national infrastructure, Class B for moderate-risk enterprise systems and Class C for lower-risk internal applications.

According to NITDA, Class A systems, including core banking switches, national identity management platforms and power grid control software, will be subject to the most rigorous testing requirements, including enhanced cybersecurity assessments, penetration testing and specialised evaluation by accredited testing organisations.

The agency said the tiered approach recognises that applications supporting critical national infrastructure require more stringent quality assurance than lower-risk systems.

NITDA targets stronger digital trust

Beyond improving software reliability, NITDA said the framework is expected to strengthen digital trust, protect taxpayer-funded technology investments and improve resilience against cyber threats.

The agency also expects the licensing of independent software testing organisations to stimulate a new segment of Nigeria’s technology industry by encouraging indigenous innovation, promoting international software quality standards and creating high-skilled employment opportunities.

NITDA added that the framework could enhance international confidence in software developed in Nigeria, helping local technology companies compete more effectively in global markets while attracting foreign direct investment.

“Quality is the foundation of digital trust. With this Framework, every software solution serving Nigerians whether built for government or the private sector will meet clear national standards for security, reliability, and interoperability,” Abdullahi said.

“This is how we modernise government technology and position Nigerian software to compete on the global stage.”

Industry given transition period before enforcement

Ahead of the 2027 enforcement deadline, NITDA said it will embark on nationwide stakeholder engagement and capacity-building programmes while commencing the accreditation of independent software testing organisations.

The agency also announced plans to issue an Expression of Interest (EOI) inviting qualified organisations to apply for licences as independent software testing bodies, giving technology companies time to prepare for the new regulatory requirements.

According to NITDA, the phased rollout is intended to provide government institutions, software developers and technology service providers with adequate time to align their software development and testing processes with the new national standards before compliance becomes mandatory in the second quarter of 2027.