Vice-President Kashim Shettima has called on state governments to take greater responsibility for addressing their electricity challenges rather than relying solely on the Federal Government, urging them to establish functional power markets in line with the Electricity Act 2023.
Shettima made the call on Wednesday during the opening of the National Stakeholders’ Workshop on the Electricity Act 2023 at the State House Banquet Hall, Presidential Villa, Abuja.
The workshop, themed “Unlocking the Opportunities of the Electricity Act 2023 for Sustainable Energy Development and Economic Growth in Nigeria,” brought together representatives of federal and state institutions, alongside electricity regulators, to discuss the implementation of the law.
The Vice-President, whose address was delivered by the Deputy Chief of Staff to the President, Ibrahim Hadejia, said Nigeria’s quest to develop a competitive industrial economy would remain difficult without dependable electricity for businesses, households and public institutions.
He explained that the Electricity Act provided an opportunity for states to take control of electricity regulation within their jurisdictions and develop power markets that reflected their economic needs and available resources.
“The Act empowers states to develop and regulate intrastate electricity markets within the applicable constitutional and statutory framework.
“The size, diversity and endowments of this nation demand this decentralisation.
“Electricity supply must become a shared responsibility, pursued with innovation and accountability across the federation. Our states must shed the habit of waiting for Abuja to provide every answer,” he said.
Shettima identified the country’s diverse energy resources as an opportunity for states to attract investments and improve electricity supply.
He pointed to solar energy prospects in Sokoto, Borno and Katsina, natural gas resources in Delta, Rivers and Bayelsa, as well as hydroelectric potential in Niger and Kebbi.
According to him, developing these resources could support critical sectors, including agriculture, manufacturing, healthcare and education.
The Vice-President stressed that passing legislation alone would not resolve the country’s electricity problems, urging states that had yet to establish regulatory institutions to begin the process without further delay.
“Legislation cannot implement itself. States yet to act must begin their legislative and institutional preparations promptly.
“They need to establish functional electricity regulatory bodies with technical competence and capacity,” he said.
To accelerate the implementation of electricity reforms, Shettima proposed a voluntary National Electricity Reform Peer Review and Implementation Framework.
The initiative would involve the Nigerian Electricity Regulatory Commission, the Federal Ministry of Power, the Nigeria Governors’ Forum and state electricity regulators.
He explained that the framework would enable states to exchange experiences, improve regulatory capacity and evaluate their progress in developing electricity markets, attracting investments, protecting consumers and expanding access to power.
According to him, states could avoid repeating mistakes by learning from the experiences of others.
“No state needs to purchase with failure the knowledge another state has already acquired.”
He added that annual voluntary assessments would help identify implementation challenges, encourage technical support and promote workable solutions while respecting the constitutional responsibilities of state governments.
Shettima also emphasised the need for private-sector participation, noting that government funding alone would not be sufficient to transform Nigeria’s electricity industry.
“Private capital must arrive with technology and expertise. Transparent licensing, predictable regulation, commercially viable markets, investment safeguards and credible dispute resolution will earn investors’ confidence,” he added.
He further called for stronger measures to protect electricity consumers from arbitrary billing, inadequate service and unfair commercial practices, insisting that operators must be held responsible for the quality of electricity they provide.
“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch.”
The Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, Joseph Tegbe, said the effectiveness of the law would depend on states’ ability to establish credible regulatory institutions and commercially sustainable electricity markets.
Similarly, the Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, disclosed that efforts were ongoing to develop a standard tariff framework for states.
He said the proposed framework was intended to protect electricity consumers while creating conditions capable of attracting investments into the sector.
Shittu also urged stakeholders to ensure that any proposed amendments to the electricity legal framework preserved and built upon existing achievements.
The Head of Compliance at the Electricity Commission, Hauwa Yakubu, disclosed that regulatory responsibilities had been transferred to 17 states, with Akwa Ibom being the latest to receive approval.
She said the commission was assisting states establishing their regulatory institutions through technical engagements and peer-to-peer training.
President Bola Tinubu signed the Electricity Act into law in June 2023, replacing the Electricity Power Sector Reform Act of 2005.
The legislation allows state governments to license electricity generation, transmission and distribution within their respective territories, while the national regulator retains oversight of interstate electricity activities.
Lagos, Edo and Kaduna had already enacted state electricity laws before the new legislation was signed.
The commission’s order transferring intrastate electricity regulation to Akwa Ibom’s regulator, AKSERC, was dated August 18, 2026.
The order set February 17, 2027, as the deadline for completing the transfer process.
In July, the commission reported that 16 states had completed their transitions.
Meanwhile, electricity generation companies disclosed in March that they were owed approximately N6.8tn as of the end of February.
National electricity generation has also remained around 4,000 megawatts for years, despite an installed generation capacity of approximately 14,000 megawatts.
