Nigeria’s power sector is drawing fresh investment and tightening its financial position, even as a regulatory intervention at one of its largest distribution companies exposes persistent governance fault lines.
On March 23, 2026, the Nigerian Electricity Regulatory Commission (NERC) announced the approval of Sherifat Adegbenro as Acting Chief Executive Officer of Eko Electricity Distribution Plc (EKEDP), in a statement issued via its official social media platform. The decision effectively halted the confirmation of Wola Joseph-Condotti, who had been appointed interim CEO by new owners earlier in the year.
The move highlights the regulator’s expanding role in enforcing governance standards in a sector undergoing structural reform and increasing private capital inflows.
The intervention comes barely three months after a consortium led by TransGrid Enerco Limited completed the acquisition of a 60 percent controlling stake in EKEDP in a deal valued at about N360 billion. The new investors had moved quickly to install Joseph-Condotti as interim chief in January 2026, following the exit of Rekhiat Momoh, who had been confirmed as substantive CEO just weeks earlier.
NERC’s decision, however, underscores the limits of board autonomy in Nigeria’s electricity market, where senior executive appointments require regulatory clearance.
A report says the commission’s position is tied to its “Know Your Leader” vetting framework, a mandatory screening process designed to assess the integrity, independence, and operational suitability of top executives in the Nigerian Electricity Supply Industry. Joseph-Condotti is understood to have undergone the assessment earlier in March but did not secure approval.
Industry sources cite a potential conflict of interest as the critical issue, pointing to alleged familial ties between the executive and a serving member of the company’s board. For a regulator that has sharpened its oversight of corporate governance, the concern appears to have been decisive.
NERC has not issued further clarification beyond its initial statement. A source within the commission said the regulator does not impose chief executives on utilities, but retains the authority to approve or reject appointments in line with market rules.
The result is a leadership vacuum that reflects a broader tension between regulatory authority and private sector control. EKEDP, which serves Nigeria’s commercial capital, has now cycled through five chief executives in roughly five years, with each transition shaped by a mix of boardroom disputes and regulatory scrutiny.
The roots of the instability date back to March 2022, when Tinuade Sanda assumed leadership of the company. Her tenure became contested, culminating in her removal in March 2024 over allegations related to qualifications and internal management issues, which she denied. The dispute exposed divisions within the board and triggered a series of leadership changes.
Momoh’s subsequent appointment and confirmation in 2025 offered only brief stability before the ownership transition reset the leadership structure. Joseph-Condotti’s emergence and subsequent regulatory setback have now extended that cycle.
Despite the uncertainty, operations at EKEDP have remained stable, according to industry sources, with Adegbenro stepping in to provide interim leadership while compliance issues are addressed.
The episode comes at a time when the Federal Government is projecting progress in the sector’s reform agenda. Speaking on March 25, 2026, in Abuja at the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company, Minister of Power Adebayo Adelabu said reforms have attracted more than $2 billion in investment and significantly reduced legacy liabilities.
According to a statement issued the same day by his Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, the reforms are anchored on policy overhaul, market liberalisation, and institutional strengthening, supported by the implementation of the Electricity Act 2023.
Adelabu said the sector’s financial outlook has improved, with revenue growth of about 70 percent in 2024 and a reduction in government liabilities by roughly N700 billion. He added that inherited liabilities, previously estimated at over N2.3 trillion, have been cut to about N146.76 billion through the intervention of NELMCO.
The minister also pointed to operational gains, including an increase in installed generation capacity to 14 gigawatts and a peak generation record of 5,801.44 megawatts. He said reforms have enabled the activation of 16 state electricity markets, reflecting a shift toward decentralisation and subnational participation.
Efforts to address the sector’s metering gap are also underway through the Presidential Metering Initiative, backed by N700 billion mobilised via the Federal Account Allocation Committee and a $500 million World Bank facility.
In parallel, NERC has moved to strengthen coordination across the evolving regulatory landscape. In the first quarter of 2026, the commission inaugurated the Forum of Nigerian Electricity Regulators (FONER) during a meeting with state electricity regulators in Lagos. The platform is expected to harmonise tariff frameworks, improve market oversight, and support capacity building as states assume greater roles under the new legal framework.
Taken together, the developments present a mixed picture of Nigeria’s power sector. On one hand, reforms are unlocking capital, improving financial metrics, and expanding institutional capacity. On the other, governance disputes at key distribution companies continue to test the effectiveness of those reforms.
For investors, the contrast is instructive. While policy direction and market structure are evolving in ways that support long-term growth, execution risks remain tied to corporate governance, regulatory compliance, and leadership stability.
At EKEDP, the immediate priority is resolving the regulatory impasse around executive leadership. Until then, the company operates in a holding pattern, with interim management in place and strategic direction subject to regulatory alignment.
The broader sector, however, continues to move forward, balancing reform momentum with the realities of institutional transition.