Nigeria, July 25 -- State governments have received a stern caution from the Nigerian Electricity Regulatory Commission (NERC), stressing that they lack the legal authority to autonomously cut electricity prices on power obtained from the national grid.

This caution follows the Enugu State Electricity Regulatory Commission (EERC) lowering rates for premium Band A consumers from N209 per kilowatthour to N160 per kilowatthour, noting affordability problems.

Expressing worry that such moves-if left unchecked-might destabilize Nigeria's already weak electricity market, NERC made its position clear in a recent public notice. Unless state legislators are ready to subsidize the difference with state finance, the Commission says that they must ...