morgANABLE Politics/Governance
The Vice President noted that different parts of the country possessed energy resources that could be harnessed to improve electricity generation and stimulate economic development.
KaNo —
Vice President Kashim Shettima has urged state governments to take responsibility for addressing electricity challenges within their jurisdictions rather than relying solely on the Federal Government, stressing the need to establish functional electricity markets under the Electricity Act 2023.
Shettima said the decentralisation of electricity regulation presented an opportunity for states to develop sustainable power systems capable of supporting industrial growth, improving economic activities and expanding electricity access across the country.
The Vice President made the call on Wednesday during the opening of the National Stakeholders’ Workshop on the Electricity Act 2023, held 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, electricity regulators and other stakeholders.
Speaking through the Deputy Chief of Staff to the President, Ibrahim Hadejia, Shettima said Nigeria’s ambition to build a competitive industrial economy would remain difficult to achieve without reliable electricity for businesses, households and public institutions.
He explained that the Electricity Act 2023 had created opportunities for states to establish and regulate electricity markets based on their economic priorities, available resources and development needs.
“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,” Shettima said.
The Vice President noted that different parts of the country possessed energy resources that could be harnessed to improve electricity generation and stimulate economic development.
He identified Sokoto, Borno and Katsina as states with significant solar energy potential, while Delta, Rivers and Bayelsa possessed gas resources capable of supporting electricity generation.
He also highlighted hydroelectric opportunities in Niger and Kebbi states, urging governments to transform these resources into viable investments that could support agriculture, manufacturing, healthcare and education.
According to him, states must move beyond passing electricity legislation to establishing institutions capable of implementing reforms and attracting investments into their power sectors.
“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 stated.
Shettima proposed the establishment of a voluntary National Electricity Reform Peer Review and Implementation Framework to strengthen cooperation among states and relevant federal institutions.
He explained that the proposed framework would involve the Nigerian Electricity Regulatory Commission, the Federal Ministry of Power, the Nigeria Governors’ Forum and state electricity regulators.
The initiative, he said, would enable participating states to exchange experiences, identify implementation challenges and assess progress in electricity market development, investment readiness, consumer protection and access to power.
“No state needs to purchase with failure the knowledge another state has already acquired,” the Vice President declared.
He further explained that annual voluntary reviews under the framework would help identify regulatory weaknesses, facilitate technical assistance and encourage practical solutions without interfering with the constitutional powers of individual states.
Shettima also emphasised the importance of private-sector participation, noting that government funding alone could not provide the investment required 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.
The Vice President urged state governments to prioritise consumer protection, particularly against arbitrary electricity billing, poor service delivery and unfair commercial practices.
He maintained that electricity operators must be held accountable for the quality of services provided to consumers, stressing that the success of the reforms would ultimately depend on improvements experienced by ordinary Nigerians.
“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch,” Shettima said.
Also speaking at the workshop, the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, Joseph Tegbe, emphasised the importance of effective institutions in implementing the electricity reforms.
Mamman said the success of the legislation would depend largely on the ability of state governments to establish credible regulatory structures and develop commercially viable electricity markets.
Similarly, the Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, disclosed that efforts were ongoing to develop a standard electricity tariff framework for states.
He explained that the proposed framework would seek to balance consumer protection with the need to attract investments into electricity generation, transmission and distribution.
Shittu also urged stakeholders to ensure that any proposed amendments to the existing legal framework consolidated progress already recorded in implementing the Electricity Act.
The Head of Compliance at the Electricity Commission, Hauwa Yakubu, disclosed that regulatory responsibilities had been transferred to 17 states, with Akwa Ibom becoming the latest beneficiary.
Yakubu explained that the commission was supporting emerging state electricity regulators through technical engagement and peer-to-peer training to strengthen their institutional capacities.
President Bola Tinubu signed the Electricity Act 2023 into law in June 2023, replacing the Electric Power Sector Reform Act of 2005.
The legislation empowers states to license and regulate electricity generation, transmission and distribution within their territories, while the national regulator retains oversight of interstate electricity matters.
Before the legislation was enacted, Lagos, Edo and Kaduna had already established state electricity laws.
The commission’s order transferring intrastate electricity regulation in Akwa Ibom to the Akwa Ibom State Electricity Regulatory Commission was dated August 18, 2026.
Under the directive, the regulatory transfer is expected to be completed by February 17, 2027.
The development followed the commission’s July report indicating that 16 states had fully transitioned to their respective regulatory arrangements.
Nigeria’s electricity sector continues to face persistent challenges, including inadequate generation, ageing infrastructure, financial difficulties and unreliable supply.
In March, electricity generation companies disclosed that outstanding debts owed to them had reached approximately N6.8tn by the end of February.
The companies also raised concerns that national electricity output had remained around 4,000 megawatts for years despite the country’s installed generation capacity of approximately 14,000 megawatts.
The situation has continued to affect industrial productivity, business operations and household electricity access, reinforcing calls for reforms capable of attracting investment and improving service delivery nationwide.
