Precious Nwonu, Enugu
Vice President Kashim Shettima has challenged state governments to take greater responsibility for addressing electricity supply problems by establishing functional power markets instead of relying solely on the Federal Government.
Shettima made the call on Wednesday at the opening of a national stakeholders’ workshop on the Electricity Act 2023, held at the State House Banquet Hall in the Presidential Villa, Abuja.
The Vice President’s address was delivered by the Deputy Chief of Staff to the President, Ibrahim Hadejia.
He said reliable electricity was essential to Nigeria’s ambition of building a competitive industrial economy, warning that businesses, households and public institutions would continue to face difficulties without meaningful improvements in power supply.
According to him, the Electricity Act 2023 provides an opportunity for states to decentralise electricity governance and develop markets that reflect their economic needs and available energy resources.
He urged state governments to stop depending on Abuja for solutions to their electricity challenges and embrace their responsibilities under the new legal framework.
Shettima identified solar energy opportunities in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, and hydropower potential in Niger and Kebbi as examples of resources states could develop to support economic growth.
He said investments in these energy sources could improve electricity access for agriculture, manufacturing, healthcare and education.
The Vice President stressed that the existence of legislation alone would not improve electricity supply, noting that states must establish the institutions required to implement the law.
He therefore urged states that had yet to establish electricity regulatory bodies to begin the necessary legislative and institutional preparations without delay.
Shettima 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 exchange experiences, strengthen regulatory capacity and assess progress in electricity market development, investment readiness, consumer protection and access to power.
He said periodic reviews could help identify implementation challenges and provide technical support without interfering with the constitutional responsibilities of state governments.
Shettima further called for greater private-sector participation, arguing that government funding alone would not be sufficient to transform the electricity industry.
He said investors needed transparent licensing procedures, predictable regulations, commercially viable markets and effective mechanisms for resolving disputes.
The Vice President also emphasised the need to protect electricity consumers against arbitrary billing, poor service delivery and unfair commercial practices, adding that power operators must be held accountable for the quality of services they provide.
Representing the Minister of Power, Joseph Tegbe, the ministry’s Permanent Secretary, Mahmuda Mamman, said the success of the Electricity Act would depend on states establishing credible institutions and developing financially sustainable electricity markets.
The Director-General of the Nigeria Governors’ Forum, Abdulateef Shittu, disclosed that work was ongoing on a standard tariff framework for states aimed at protecting consumers while encouraging investment.
Shittu urged stakeholders to build on existing reforms when considering changes to the legal framework.
Similarly, the Head of Compliance at the electricity regulatory commission, Hauwa Yakubu, said regulatory responsibilities had been transferred to 17 states, with Akwa Ibom being the latest to receive approval.
She added that the commission was supporting emerging state regulators through technical assistance, training and peer-to-peer engagement.
President Bola Tinubu signed the Electricity Act into law in June 2023, replacing the Electric Power Sector Reform Act of 2005.
The legislation allows state governments to establish and regulate electricity markets within their jurisdictions, including licensing generation, transmission and distribution activities, subject to applicable constitutional and statutory provisions. Federal regulation continues to cover matters within the national regulator’s jurisdiction, including interstate electricity activities.
The reform comes amid persistent electricity supply challenges and concerns about the financial sustainability of the power sector.
Power generation companies reported in March that outstanding debts owed to them had reached approximately ₦6.8tn at the end of February. National electricity generation has also remained around 4,000 megawatts for extended periods, despite an installed generation capacity estimated at about 14,000 megawatts.
Shettima said the effectiveness of the Electricity Act would ultimately be measured by improvements in electricity access, service reliability and the ability of Nigerians to obtain dependable power for their daily activities.