An energy expert and former member of the Ministerial Taskforce on Power, Engr, Olatunji Ariyomo, has strongly criticized proposed plans to grant the Nigerian Electricity Management Services Agency (NEMSA) sole authority over electricity technical standards. He said this undermines states’ constitutional right to manage their power sectors and hinders decentralization efforts.
In an interview in Akure, Ariyomo a fellow of Nigerian Society of Engineers, who spearheaded the creation of Nigeria’s first independent state electricity law, contends that centralizing technical standards under NEMSA contradicts the ongoing power sector revolution. He emphasizes that states derive their power to manage electricity from the Constitution, not the Electricity Act. This decentralization is crucial for exponential sector growth.
Ariyomo stated, “The plot to centralize technical standards under a single federal agency is a threat to the very principle of decentralization of the power sector, which is now a constitutional right for states. It will undermine sectorial growth, encumber investments into the sector through sub-nationals, and jeopardize the success achieved with the clarity brought to the power sector through the alteration of the relevant sections in the constitution as assented to by President Muhammadu Buhari on March 17, 2023.”
He dismissed the argument that a centralized system prevents confusion, explaining that engineering codes and standards are universal, primarily based on International Electrotechnical Commission (IEC) standards. Variations exist only for adaptability and interoperability, not fundamental differences. He reiterated this point by stating that power sector professionals worldwide rely on IEC standards, similar to civil engineers using Eurocodes. Local adaptations are based on these international standards, and no single entity, including NEMSA, possesses unique expertise that supersedes them.
Ariyomo cited sections of the 1999 Constitution, stating that the National Assembly’s power on electricity is defined in the Second Schedule, Concurrent Legislative List, Section 13 (items a-f). He explained that a careful reading of these items shows the Constitution clearly defines the National Assembly’s legislative powers. Notably, none of the six items grants the National Assembly power over distribution, except in item (d), which restricts legislation to distribution involving Nigeria in an arrangement with another country and only in affected parts of Nigeria.
He further explained that Section 15 of the 1999 Constitution defines electricity distribution as supply from a substation to the consumer, a responsibility assigned to state houses of assemblies under Section 14. Therefore, only state governments, through their assemblies, can establish authorities to manage distribution between substations and consumers. He added that much of the existing distribution infrastructure was originally built by state agencies, landlords, and residents, not the Discos. Therefore, state-established authorities should have the legal right to control their operation.
Ariyomo clarified that the argument for a centralized technical standard to avoid confusion is flawed. He emphasized that engineering codes and standards are universal.
According to him, “Engineering is a practice, a professional practice. Codes and technical standards are universal. There are no different or disparate standards of practice in engineering worldwide. What you can have are individuals who may desire to shortchange standards. You will find them at the national level, at state level, and in the local government or private sector.” Any apparent differences are simply adaptations based on scientific and engineering principles for adaptability and interoperability.
Ariyomo asserted that the National Assembly cannot grant exclusive authority to NEMSA on local distribution networks, as power is on the concurrent legislative list. He stated, “Power is on the concurrent legislative list. You cannot take away from states such rights and privileges granted to them by the Constitution. More significantly, as far as the distribution of electricity is concerned in Nigeria, the power to operate distribution networks or set up institutional frameworks for the management of distribution inter-state or within a sub-national is conferred exclusively upon states by the constitution – the only exception being at international boundaries.
“In essence, it is illegal for any agency of the Federal Government to dabble in any matter that bothers on distribution within the geographical boundaries of a state except in parts of a state that borders another country in which case such a ‘shobolation’ must in fact be for the purpose of distribution in an arrangement with another country.”
He posited that the NEMSA Act and related laws are likely illegal because NEMSA’s activities regulate electricity distribution, a power constitutionally reserved for states. He suggested a legal challenge by states could lead the Supreme Court to invalidate NEMSA’s authority in this area.
Ariyomo cited the United States as an example of state autonomy in the power sector and proposed a decentralized grid system with interconnected regional grids forming a tertiary national grid. He emphasized this is not balkanization but grid reconfiguration, enabling states (primary grids) to share excess power regionally and nationally. He suggested a target of 700MW new generation per state (25,200MW total) with 15,000MW throughput.
Ariyomo suggested NEMSA should assist states in establishing their own standard units and foster a collaborative national peerage committee for sectorial standards. He envisions a council of regulatory authorities from national and state levels meeting regularly to address standardization.
Ariyomo, who led the regulatory transfer process between NERC and the Ondo State Government, proposed decentralizing the national grid into interconnected regional grids, forming a tertiary (national) grid.
Ariyomo stated he is not opposed to national standards and has proposed collaboration between NEMSA and subnational entities. He suggested, “If NEMSA wants to stay relevant since a national standard is desirable, NEMSA should be in the forefront of helping states to set up their standard units right away. And the national standards should be a set of codes that all stakeholders collaboratively own. There could be an annual, or a bi-annual council of regulatory authorities in the power sector where heads of agencies continuously meet as peers to address the science of better standards etc and have a special joint committee of experts regularly work on reviewing different aspects of standardisation, codes, etc that constitute the national standards.”
Ariyomo called for laws ensuring regulatory authorities are staffed by qualified professionals. “This is where the legislators at both national and state levels can help the sector by making laws that will ensure such authorities that deal strictly in core science and engineering issues are manned purely by qualified professionals,” he concluded.