SHETTIMA URGES STATES TO END DEPENDENCE ON FG FOR ELECTRICITY SOLUTIONS
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By ‘Balogun Ibrahim
Vice President Kashim Shettima has urged state governments to stop relying solely on the Federal Government to address local electricity challenges and establish functional electricity markets in line with the Electricity Act 2023.
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.
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, as well as regulatory agencies.
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In a speech delivered on his behalf by the Deputy Chief of Staff to the President, Ibrahim Hadejia, the Vice President said Nigeria’s ambition to develop a competitive industrial economy would remain difficult to achieve without reliable electricity for businesses, households and public institutions.
He noted that the Electricity Act 2023 provided an opportunity to decentralise electricity governance and enable states to develop power markets tailored 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.
Shettima stressed that electricity supply should become a collective responsibility across the federation, urging state governments to take greater initiative rather than depend on Abuja for solutions.
“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 added.
The Vice President highlighted the energy potential of different parts of the country, citing solar resources in Sokoto, Borno and Katsina, natural gas deposits in Delta, Rivers and Bayelsa, and hydroelectric opportunities in Niger and Kebbi states.
He urged state governments to harness these resources to attract investments that would support agriculture, manufacturing, healthcare and education.
Shettima, however, cautioned that the legislation would not automatically improve electricity supply without effective implementation. He called on states yet to establish electricity regulatory institutions to begin the necessary legislative and institutional preparations without 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 promote effective implementation, the Vice President proposed a voluntary National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the Nigeria Governors’ Forum and state electricity regulators.
According to him, the framework would allow states to exchange experiences, strengthen regulatory institutions and assess progress in electricity market development, investment readiness, consumer protection and access to power.
He said annual voluntary reviews could help identify implementation challenges, provide technical assistance and encourage practical solutions while respecting the constitutional powers of state governments.
“No state needs to purchase with failure the knowledge another state has already acquired,” Shettima stated.
He also emphasised the need for private-sector participation, noting that the government could not fund the electricity sector’s transformation solely through public resources.
“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 said.
Shettima further called for stronger consumer protection measures to prevent arbitrary billing, poor electricity supply and unfair commercial practices. He maintained that electricity operators must be held accountable for the quality of services delivered to consumers.
“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch,” he said.
Meanwhile, the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, Joseph Tegbe, said the success of the Act would depend on states’ capacity to establish credible institutions and commercially sustainable electricity markets.
The Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, disclosed that work was ongoing on a standard tariff framework for states, aimed at protecting consumers while encouraging investment.
He urged stakeholders to ensure that any amendments to the legal framework built on the progress already achieved.
Similarly, the Head of Compliance at the Electricity Commission, Hauwa Yakubu, said the commission had issued regulatory transfers to 17 states, with Akwa Ibom being the latest beneficiary.
She added that the commission was assisting newly established state regulators through peer-to-peer training and technical engagements.
President Bola Tinubu signed the Electricity Act 2023 into law in June 2023, replacing the Electricity Power Sector Reform Act of 2005. The legislation allows states to license electricity generation, transmission and distribution within their territories, while the national regulator retains oversight of interstate electricity matters.
Lagos, Edo and Kaduna states had already enacted their own electricity laws when the legislation was signed.
The commission’s order transferring regulatory oversight of Akwa Ibom’s intrastate electricity market to the Akwa Ibom State Electricity Regulatory Commission (AKSERC) was dated August 18, 2026. The order stipulated that the transition should be completed by February 17, 2027, following the commission’s earlier report in July that 16 states had fully transitioned.
The call for accelerated electricity reforms comes amid persistent challenges in Nigeria’s power sector. Generation companies disclosed in March that they were owed approximately ₦6.8tn as of the end of February, while national electricity generation had remained around 4,000 megawatts for years despite an installed capacity of about 14,000 megawatts.
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