Shockwaves are rippling through Nigeria’s electricity sector following a contentious leadership shake-up at the Nigerian Electricity Regulatory Commission (NERC), even as the nation’s industrial backbone buckles under the strain of unreliable power and soaring energy costs. The drama, which unfolded in early August 2025, has thrust institutional integrity and investor confidence into the spotlight, raising urgent questions about the future of Nigeria’s manufacturing sector and its broader economy.
On August 8, 2025, Abdullahi Ramat, a 39-year-old with a PhD in Strategic Management but no direct power-sector experience, forcefully assumed the role of NERC chairman. According to BusinessDay, Ramat arrived at the NERC headquarters flanked by political supporters and security personnel, displacing the acting leadership despite lacking the constitutionally required Senate confirmation. This move, described by power sector analyst Adetayo Adegbemle as “a constitutional crisis unfolding in real-time,” blatantly violated the NERC Act (2005), which mandates legislative approval for such appointments.
“Ramat’s dramatic arrival … wasn’t merely a leadership transition; it was a constitutional crisis unfolding in real-time. His forceful takeover, displacing acting leadership despite lacking Senate confirmation and occurring after a retracted presidential directive, blatantly violates the NERC Act (2005),” Adegbemle wrote in a document sent to BusinessDay.
The presidency, perhaps sensing the growing storm, quickly issued a clarification: Ramat’s nomination, it said, remained “subject to Senate confirmation,” and the acting chairman would retain authority until then. Yet, with the Senate recessed until late September, a legal vacuum has emerged, threatening to nullify any critical decisions on tariffs or licenses made in the interim. This uncertainty, Adegbemle warns, could have dire consequences for a sector already grappling with a severe liquidity crisis and the ever-present threat of grid collapse.
International investors and industry stakeholders have reacted with undisguised alarm. The Nigerian Electricity Supply Industry (NESI) depends heavily on foreign investment to upgrade its aging generation and distribution infrastructure. But as Adegbemle pointed out, “international partners view independent, rule-based regulation as non-negotiable for capital deployment.” The perception that Ramat’s installation was orchestrated by shadowy political figures—rather than based on merit or due process—risks transforming the sector into a politically toxic asset class, potentially freezing urgently needed investments.
Ramat’s credentials, on paper, suggest potential for modernization. He’s credited with implementing blockchain-driven revenue systems and energy-efficient initiatives during his tenure as chairman of Ungogo Local Government Area. His popular pledge to compel distribution companies (DisCos) and generation companies (GenCos) to end consumer exploitation through opaque billing has resonated with a frustrated public. But as Adegbemle cautions, “without confirmed authority, any enforcement actions risk judicial nullification, further delaying essential tariff reforms and consumer protections.”
Meanwhile, the effects of Nigeria’s power sector instability are being felt most acutely by the nation’s manufacturers. On August 20, 2025, Dr. Mustapha Abdullahi, director general of the Energy Commission of Nigeria (ECN), sounded the alarm at a public event in Abuja. “The nation’s manufacturing sector is sinking deeper into crisis due to unstable electricity supply and rising energy costs,” he said during the presentation of the new Industrial Energy Efficiency (IEE) Database, developed under the UNIDO-GEF project “Improving Nigeria’s Industrial Energy Performance and Resource Efficient Cleaner Production.”
Spot surveys conducted by the ECN across key industrial hubs—Lagos, Ogun, Kano, Kaduna, Onitsha, Port Harcourt, Warri, and Abuja—revealed troubling consumption patterns that underscore the urgency for decisive intervention. “You cannot manage what you do not measure. Factories will continue to close or relocate without reliable data and focused efficiency measures,” Dr. Abdullahi emphasized. The IEE Database, he explained, is designed to provide reliable information for both government and the private sector, serving as a corrective response to the twin challenges of rising tariffs and erratic supply that are eroding industrial competitiveness.
The director general of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, echoed these concerns, calling the database a “strategic milestone” for the sector. “Energy efficiency is not just a compliance issue—it is a survival strategy and a route to resilience,” Ajayi-Kadir said, urging manufacturers to adopt global energy management standards and work with regulators to expand pilot projects into sector-wide programs.
Dr. Reuben Bamidele, national programme officer at UNIDO, reinforced the importance of data-driven policy. “Policies without data are ineffective,” he said, expressing confidence that the IEE Database would help industries benchmark performance, monitor consumption, and adopt cleaner production practices.
Yet for many in the sector, the crisis is already acute. Engr. Okon Ekpenyong, an Industrial Energy Efficiency Consultant to the ECN, revealed that “many factories have already shut down as a result of soaring tariffs and erratic supply, while others have resorted to costly gas-to-power solutions and compressed natural gas generation to keep operations alive.” He urged manufacturers to treat energy efficiency as an investment in their own competitiveness, not just a regulatory hurdle. “This project provides clarity on where operational improvements and targeted retrofits can yield quick returns,” Ekpenyong noted.
Amid these mounting pressures, calls for decisive action have grown louder. Adegbemle outlined a three-pronged solution to restore stability and investor confidence in the power sector: First, President Bola Tinubu must “publicly and unequivocally reaffirm that Ramat remains only a nominee until Senate confirmation,” distancing the administration from what many see as a constitutional overreach. Second, the Senate, upon its return on September 23, should expedite Ramat’s confirmation hearing, subjecting his competence and commitment to NERC’s statutory independence to rigorous scrutiny. And finally, Ramat himself “must immediately convene investors, consumer advocates, and utilities, pledging adherence to proper governance and outlining a transparent agenda to rebuild trust.”
“NERC is a regulator, not a battleground,” Adegbemle stressed, adding that the resolution of this impasse “will either catalyze long-overdue reform or entrench a decay that investors simply cannot afford to ignore.”
Back in the industrial heartlands, the sense of urgency is palpable. Factories, facing the dual threat of rising costs and unreliable supply, are closing or relocating. Some have turned to expensive alternatives, like gas-to-power solutions, just to keep their doors open. The new IEE Database offers a glimmer of hope, promising to make reliable data available for both government and private sector actors, and serving as a foundation for more effective policies and targeted interventions.
As Nigeria stands at this crossroads, the stakes could hardly be higher. The outcome of the NERC leadership crisis, and the nation’s broader struggle to stabilize its power sector, will shape not just the fortunes of its manufacturers, but the trajectory of its entire economy for years to come.
