REGULATING THE ENERGY SECTOR IN NIGERIA
In Nigeria, there isn’t a single ministry that oversees all affairs relating to the country’s energy. Rather, the varied roles in the energy sector are undertaken by several ministries, departments, and agencies (MDAs). This includes federal ministries of power, water resources, petroleum, environment and science, and technology, etc.
The Federal Ministry of Power (FMP): The Federal Ministry of Power is the policy-making arm of the Federal Government with the responsibility for the provision of power in the country. The Ministry in discharging this mandate is guided by the provisions of the National Electric Power Policy (NEPP) of 2001, the Electric Power Sector Reform (EPSR) Act of 2005, and the Roadmap for Power Sector Reform of August 2010. The Rural Electrification Agency (REA), Electricity Management Services Limited (EMSL) of Nigeria, and National Power Training Institute of Nigeria (NAPTIN) are affiliated to the ministry, whereby activities of the independent regulator National Electricity Regulatory Commission (NERC) are overseen by the ministry. (https://www.power.gov.ng/) .
Federal Ministry of Environment (FMENV): FMENV has the statutory responsibility of protecting the environment against pollution and degradation and ensuring the conservation of natural resources for sustainable development in Nigeria. Under its Department Of Climate Change, the ministry coordinates all climate change matters. The Department’s main objective is to foster renewable energy and energy efficiency, thus it focuses mainly on the sustainable use of biomass for cooking purposes and small-scale agricultural applications. The FMENV is also regulating the activities of the Environmental and Social Impact Assessment (ESIA). ESIA is mandatory for all development projects as per the Nigerian EIA Act No. 86 of 1992.
Federal Ministry of Industry, Trade and Investment (FMITI): the mission of the ministry is to create an economic environment in Nigeria that attracts investments, advances the industrialization process, and expands trade and export to strengthen the domestic economy. FMITI in collaboration with other MDAs supervises products, processes, and companies in the energy industry. It also supports and enacts renewable energy and energy efficiency measures. It oversees the production of parts of solar panels and is responsible for policies regarding the blending of biomass and provides industry incentives for renewable energy applications. Standard Organisation of Nigeria (SON) is affiliated with FMITI. The functions of SON include: preparing Nigerian Industrial Standards and ensuring the compliance of products and methods with such standards, establishing a quality assurance system including certification of factories, products, and laboratories, fostering interest in the formulation and adherence to standards by industry and the general public, and, assessing the conformity of imported products in the port of origin (pre-shipment verification).
Federal Ministry of Water Resources (FMWR): The mission of the ministry is to provide sustainable access to safe and sufficient water to meet the socio-economic needs of all Nigerians through efficient water resources management for basic human needs, irrigated agriculture, hydropower generation, and the promotion of a healthy population while maintaining the integrity of freshwater bodies. The ministry through its Department of Dams and Reservoir Operations is involved in numerous hydropower projects. FMWR handles the civil works and issuing water licenses in the hydropower project.
Federal Ministry of Petroleum Resources (FMPR): The ministry directs petroleum resources and their activities in Nigeria. It is tasked with the initiation and formulation of the board policies and programs on the development of the Petroleum sector (Oil and Gas) in general, formulation of policies to stimulate private industry investment and participation in the oil and gas sectors, licensing of all Petroleum and gas operations and activities, and coordination and supervision of all bilateral and multilateral relations affecting the energy (Oil and Gas) Sector among other functions. The activities of the Nigerian National Petroleum Corporation (NNPC), in addition to other parastatal, are coordinated by the ministry. NNPC has sole responsibility for upstream and downstream developments in the oil industry and is also responsible for regulating and supervising the sector on be- half of the Nigerian government.
Federal Ministry of Science and Technology (FMST): The ministry develops and implements strategies for science and technology development in Nigeria. The ministry consists of technical departments, each specializing in a certain field of science and technology. The Renewable and Conventional Energy Technology Department is responsible for energy issues in the FMST. The main focus of the department is on nuclear, renewable, and alternative energy sources as well as energy efficiency and R&D activities addressing energy-related problems associated with environmental degradation, pollution, and climate change. The Energy Commission of Nigeria (ECN) is affiliated with the ministry. The Energy Commission of Nigeria (ECN) was established by Act No. 62 of 1979, as amended by Act No. 32 of 1988 and Act No. 19 of 1989, with the statutory mandate for the strategic planning and coordination of national policies in the field of Energy in all its ramifications. By the Mandate, the ECN is the apex government organ empowered to carry out overall energy sector planning and policy implementation, promote the diversification of the energy resources. National Agency for Science and Engineering Infrastructure (NASENI) is also a parastatal of FMST and is active in the energy sector. NASENI promotes local manufacturing of renewable energy technologies such as solar modules, small hydro turbines, pole-mounted transformers, and wind turbine blades.
Bureau of Public Enterprise (BPE): The bureau is task formulating new policy, establishing a new legal and regulatory framework, Structural changes to the sector, and the institutional operatives. Its core mission is to be the key driver of the Government’s economic reform program. The bureau is the major stockholder of the Nigerian Bulk Electricity Trading Plc (NBET). NBET was established in 2010 in line with provisions of the Electric Power Sector Reform Act (EPSRA). It is a trading licensee holding a bulk purchase and resale license. Its mandate is to engage in the purchase and resale of electricity and ancillary services from independent power producers and the successor generation companies.