Nigeria has emerged as one of top performers in 2020’s Electricity Regulatory Index, ERI, Report.
This report, published by the African Development Bank, ranks Nigeria 8th out of the 36 African countries surveyed for the ERI ranking. The country was also the only West African nation among the top 10 performers.
The ERI report is based on an annual survey of policymakers and electricity regulators across Africa. The index measures progress in electricity regulatory environments. The ERI, a flagship report of the African Development Bank, is a composite index which measures the level of development of electricity sector regulatory frameworks in African countries against international standards and best practice.
The ERI consists of three sub-indices. The Regulatory Governance Index, RGI assesses how well the regulatory framework supports electricity sector reform, promotes efficiency, and meets desired economic, financial, environmental, and social objectives. It is concerned with the existence and content of electricity regulations. The Regulatory Substance Index, RSI assesses how well the regulatory framework is implemented in practice. The Regulatory Outcome Index, ROI assesses the outcomes of regulatory processes from the perspective of regulated entities and power consumers. It offers insights into how the actions of regulators have affected the performance of the sector.
Nigeria was ranked 3rd under Regulatory Governance Index, 7th under the regulatory Substance Index Results by Country, and 16th under the Regulatory Outcomes Index by country.
The third edition of the ERI report was launched during the Digital Energy Festival of the Africa Energy Forum, on 5 November 2020. The event brought together more than 70 stakeholders in the energy sector, regulators, international organizations, and development finance institutions like Africa50 and the World Bank.
Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulations, at the African Development Bank, said that the report will continue to provide key information to help the AUC/EU monitor the progress on harmonization of regulatory and market frameworks in Africa.
“Guided by the ERI, some surveyed countries have taken steps to address some of the identified
gaps in their regulatory frameworks over the years”, he added.