Public Notices

Media Contacts

Name: Usman Abba Arabi
Email: usman.abbaarabi@nerc.gov.ng

Phone: 09- 462.1408

Name: Vivian Mbonu
Email: vivian.mbonu@nerc.gov.ng
Phone: 09- 462.1408

Name: Michael Faloseyi
Email: michael.faloseyi@nerc.gov.ng 
Phone: 09- 462.1408

Notice on Tenure of Licences

PUBLIC NOTICE ON THE INTERPRETATION OF SECTIONS 71 (10) AND 72 (1) OF THE ELECTRIC POWER SECTOR  REFORM (EPSR) ACT 2005 REGARDING THE TENURE OF ITS LICENCES

In the exercise of the powers conferred on it by Section 32(1)(d) of the Electric Power Sector Reform Act 2005 and all other powers in that behalf, the Nigerian Electricity Regulatory Commission (NERC) hereby gives notice to all its licensees, prospective investors, stakeholders in the electricity industry and members of the general public on the interpretation of Sections 71(10) and 72 (1) of the ESPR Act 2005 with regard to the tenure of its licences.

Section 71(10) provides that:
“A licence shall be valid for a period of up to, but not exceeding ten years, provided that the Commission may extend the period of a licence taking into account the nature of the undertaking or business, for an additional period not exceeding five years at a time it determines that it is in the public interest to do so.”

Section 72(1) provides as follows:
“Subject to the provisions of this Act, the holder of a licence may apply for a renewal of the licence before it expires.”

This notice serves as clarification of the position of NERC on these provisions to assure stakeholders in the electricity industry and other interested parties that upon application and subject, only to compliance with the Terms and Conditions of the Licence, the combined effect of sections 71(10) and 72(1) guarantees the Licensee a cumulative licence tenure of twenty five (25) years made up of the initial ten (10) year grant, a five (5) year extension and another ten (10) years upon renewal.


This clarification has become necessary so as to mitigate the risk that short licence tenure creates, and also to provide financiers as well as other contracting entities the comfort they require to accommodate the long-term gestation of most electricity industry projects.

Signed

Sam Amadi
Chairman/CEO

For further information please contact us by

Telephone: 09 462 1421, 09 462 1400 & 09 462 1410
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or
Visit our us at Adamawa Plaza, Plot 1099 First Avenue, Off Shehu Shagari Way, CBD, Abuja FCT.

Corporate Headquarters


Adamawa Plaza,
 Plot 1099,
First Avenue, 
Off Shehu Shagari Way
Central Business District

Abuja F.C.T, Nigeria
Tel: +234 09 4621400, 09 4621410
info@nerc.gov.ng

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