The Consumer Advocacy and Empowerment Foundation (CADEF) has warned that low public trust in and poor awareness of regulatory institutions could undermine Nigeria’s energy transition.
CADEF Executive Director Dr Chiso Ndukwe-Okafor made the announcement in a statement on Saturday.
Ndukwe-Okafor said the foundation’s survey found that 40 per cent of electricity consumers could not identify regulators in their states. While 79 per cent of consumers knew of the Nigerian Electricity Regulatory Commission (NERC), they did not understand its functions.
She also said only six per cent of respondents were aware of grid-related improvements in their communities, highlighting a communication gap between electricity institutions and consumers.
“Nigeria’s electricity crisis extends beyond inadequate supply, as millions of households and businesses struggle with the rising cost of accessing electricity and alternative energy sources.
“Many countries experience energy poverty, where electricity is available but too expensive for people to afford. Nigeria, however, suffers from both problems,” she said.
She explained that Nigeria faced both energy access deficits and energy poverty: consumers lacked sufficient electricity from the national grid and could not afford alternative sources.
According to her, these combined challenges had forced many households and businesses to reduce electricity consumption, increasingly affecting their daily economic activities.
Ndukwe-Okafor said 45 per cent of respondents relied on generators for backup electricity, despite most earning less than N100,000 monthly.
“Thirty per cent experience inadequate energy access, while 21 per cent sometimes reduce electricity consumption and 18 per cent always cut back.
“Another five per cent of respondents can never afford the energy they require, underscoring the severity of the affordability challenge,” she said.
Ndukwe-Okafor also questioned the fairness of electricity supply bands, citing cases where consumers connected to the same feeder did not receive their promised supply hours.
On institutional confidence, she said 66 per cent of respondents reported low trust in government, while 31 per cent reported medium trust.
She added that electricity distribution companies recorded 57 per cent low trust, 39 per cent medium trust and four per cent high trust. For regulators, the figures were 40 per cent, 53 per cent and six per cent, respectively.
Ndukwe-Okafor said trust should be considered an essential part of energy infrastructure, stressing that consumers needed confidence in the institutions responsible for regulating and delivering electricity services.
Despite the challenges, she highlighted strong consumer interest in renewable energy, with 89 per cent of respondents considering adoption by 2028.
She added that 95 per cent were willing to adjust their electricity use to reduce bills, while 88 per cent were prepared to undergo approval processes lasting between two and three months.
Ndukwe-Okafor explained that the approval process would allow consumers to sell excess electricity generated by renewable energy systems to distribution companies.
However, she identified high upfront costs and limited financing options as major barriers, adding that 19 per cent of respondents expressed distrust in renewable energy vendors.
She called for stronger consumer protection, transparent market information and greater accountability among service providers to build confidence in the renewable energy market.
To address information gaps, Ndukwe-Okafor announced CADEF’s upgraded Renew Energy Naija digital platform, which is designed to guide Nigerians on distributed energy solutions.
She said the platform features a solar calculator that lets consumers enter their household appliances, quantities and wattages to estimate energy needs and identify suitable solar configurations.
“The platform also provides a directory of renewable energy service providers, educational resources, policy briefs, consumer surveys, a glossary of renewable energy terms and industry articles,” she said.
The statement quoted Dr Anita Okuribido, founder and national president of the Women in Renewable Energy Association (WIRE-A), as calling for more accessible financing to increase women’s participation in Nigeria’s renewable energy market.
Okuribido said that although funding opportunities existed for renewable energy development, restrictive lending requirements—including collateral, credit history and extensive documentation—prevented many women-led businesses from accessing capital.
She advocated financing models that accommodated women-led businesses and low-income consumers, including pay-as-you-go arrangements, equipment financing, working capital support, loan guarantees and patient capital.
Okuribido said financing structures needed to go beyond funding targets to ensure women benefited as energy consumers, entrepreneurs and investors.
The statement also quoted Abdullahi Adamu, director of research and data analytics at NERC, as highlighting regulatory measures introduced under the Electricity Act 2023.
He said the measures aimed to expand electricity access and support distributed energy development.
Adamu said the commission issued Mini-Grid Regulations in April and Net Billing Regulations in June.
He added that 17 states had completed the process of establishing and assuming regulatory oversight of their electricity markets.
