Olaniwun Ajayi LP

Resolving Customer Disputes in Nigeria’s Decentralised Power Market

Nigeria’s electricity sector is experiencing its most profound shift since the 2013 privatisation. With at least 15 states now exercising full regulatory oversight through State Electricity Regulators (SERCs), the procedure for resolving customer disputes in Nigeria’s power market—including overbilling, disconnection and poor service quality—is being fundamentally reshaped.

This article examines the transition from federal to state-level complaint management and clarifies the evolving jurisdictional boundaries between NERC and the new SERCs. It also offers a detailed guide to navigating this decentralised regime and ensuring robust consumer protection across the electricity sector.

We invite you to read the full publication via the link below.

Why DisCo customer disputes matter now

The Nigerian Electricity Supply Industry is going through its most consequential transformation since the 2013 privatisation reforms. The Electricity Act 2023 decentralised electricity regulation. It also created the legal architecture for independent sub-national electricity markets.

As of May 2026, no fewer than fifteen states had assumed full regulatory authority over their electricity markets. Consequently, State Electricity Regulators now serve as the primary regulatory interface for consumers in those jurisdictions.

Against that backdrop, the relationship between Electricity Distribution Companies and their customers remains deeply contentious. In April 2025, regulators fined eight DisCos a combined NGN 628 million for breaching NERC’s estimated billing caps. Those figures point to a systemic problem in service delivery. Moreover, they show why accessible and enforceable dispute procedures matter so much.

The nature of DisCo-customer disputes

DisCos sit at the principal interface between the electricity market and end-use customers. They supply electricity, issue bills and collect revenue. In addition, they manage customer accounts, connect and disconnect premises, address faults and respond to complaints.

Generation and transmission problems can of course affect the quality of supply a customer finally receives. Even so, the customer’s immediate legal and commercial relationship usually sits with the DisCo.

Federal and state regulators after the Electricity Act

The shift from federal to state-level regulation changes the forum in which customers resolve these disputes. Our article examines the emerging role of the SERCs. It also maps the jurisdictional boundaries between NERC and the SERCs.

Furthermore, it considers the practical challenges likely to follow. These include regulatory fragmentation, transitional uncertainty and overlapping federal-state oversight.

Our full publication sets out how customers and DisCos can navigate the new landscape. Click the button below to read it.
Download the guide to customer disputes in Nigeria’s power market

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