Vice-President urges states to establish electricity regulators, attract private investment and use the Electricity Act 2023 to improve power supply.
Vice-President Kashim Shettima has urged state governments to stop relying solely on the Federal Government to resolve their electricity challenges and take greater responsibility for developing functional power markets.
Shettima made the call on Wednesday at the opening of the National Stakeholders’ Workshop on the Electricity Act 2023, held at the State House Banquet Hall, Presidential Villa, Abuja.
He was represented at the event by the Deputy Chief of Staff to the President, Ibrahim Hadejia.
The workshop, themed “Unlocking the Opportunities of the Electricity Act 2023 for Sustainable Energy Development and Economic Growth in Nigeria,” brought together federal and state institutions, electricity regulators and other stakeholders to discuss the implementation of the law.
States Urged to Establish Functional Electricity Markets
Shettima said Nigeria’s ambition to build a competitive industrial economy would remain constrained unless electricity reforms translated into reliable power for businesses, households and public institutions.
According to him, the Electricity Act 2023 provides an opportunity to decentralise electricity governance and enable states to develop markets suited to their economic needs and available resources.
“The Act empowers states to develop and regulate intrastate electricity markets within the applicable constitutional and statutory framework,” he said.
He urged state governments to stop waiting for Abuja to provide every solution and instead work towards improving electricity supply through effective regulation, investment and accountability.
The Vice-President warned that passing legislation alone would not guarantee better electricity supply, urging states that had yet to establish electricity regulatory bodies to begin the necessary legislative and institutional preparations.
Shettima Highlights States’ Energy Resources
The Vice-President identified the country’s diverse energy resources as an opportunity for states to expand electricity access and support economic development.
He cited solar energy potential in Sokoto, Borno and Katsina states, gas resources in Delta, Rivers and Bayelsa, and hydroelectric opportunities in Niger and Kebbi.
Shettima urged state governments to turn these resources into viable investments capable of supporting agriculture, manufacturing, healthcare and education.
He also proposed a voluntary National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission, the Federal Ministry of Power, the Nigeria Governors’ Forum and state electricity regulators.
The proposed framework would enable states to share experiences, strengthen regulatory institutions and assess progress in electricity market development, investment readiness, consumer protection and access to electricity.
Annual reviews, he said, could help identify implementation challenges and facilitate technical assistance without undermining the constitutional powers of state governments.
Private Investment Needed to Improve Power Supply
Shettima said the government could not finance the transformation of Nigeria’s electricity sector from public funds alone.
He called for transparent licensing procedures, predictable regulations, commercially viable markets, investment safeguards and credible dispute-resolution mechanisms to attract private capital, technology and expertise.
He also emphasised the need to protect electricity consumers from arbitrary billing, poor service and unfair commercial practices, insisting that operators must be held accountable for service quality.
At the workshop, the Director-General of the Nigeria Governors’ Forum, Abdulateef Shittu, said work was underway on a standard tariff framework intended to protect consumers while supporting investment and commercially sustainable electricity markets.
Meanwhile, the Nigerian Electricity Regulatory Commission’s Head of Compliance, Hauwa Yakubu, disclosed that regulatory responsibilities had been transferred to 17 states, with Akwa Ibom the latest to receive a transfer order.
She said the commission was supporting emerging state regulators through technical engagement and peer-to-peer training.
Electricity Act Opens a New Phase of Reform
President Bola Ahmed Tinubu signed the Electricity Act 2023 into law in June 2023. The legislation provides a framework for states to develop and regulate electricity markets within their jurisdictions, subject to the applicable constitutional and statutory provisions.
The reform is intended to give states greater scope to address local electricity needs while creating opportunities for investment in generation, distribution and related infrastructure.
However, the success of the reform will depend on the capacity of state institutions, the availability of financing, effective regulation and improvements in the electricity delivered to consumers.
Shettima stressed that the ultimate measure of the law would be whether Nigerians experienced more reliable electricity in their homes, businesses and public institutions.
