Vice President Kashim Shettima has urged state governments to end their dependence on the Federal Government for solutions to local electricity challenges and establish functional electricity markets under 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 federal and state institutions, regulators and other stakeholders to discuss the implementation of the law.
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 build a competitive industrial economy would remain constrained unless electricity reforms delivered reliable power to businesses, households and public institutions.
He explained that the Act provides an opportunity to decentralise electricity governance and enable states to develop power 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.
Shettima added that states must take greater responsibility for addressing their electricity challenges rather than waiting for the Federal Government to provide all the 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 said.
The Vice President urged states to take advantage of their natural resources to expand electricity generation, citing solar energy potential in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, and hydropower opportunities in Niger and Kebbi states.
He said these resources could support investments in agriculture, manufacturing, healthcare and education if properly harnessed.
Shettima also called on states that had yet to establish electricity regulatory bodies 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,” he said, stressing the need for technically competent regulators capable of managing electricity markets.
To support implementation, he 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.
According to him, the framework would enable states to exchange experiences, strengthen regulatory institutions and assess progress in market development, investment readiness, consumer protection and electricity access.
Shettima said annual voluntary reviews could identify implementation challenges, facilitate technical assistance and encourage practical solutions without undermining the constitutional powers of states.
“No state needs to purchase with failure the knowledge another state has already acquired,” he said.
The Vice President further stressed the importance of private investment, noting that the government could not finance the transformation of the electricity sector through public funds alone.
He said transparent licensing, predictable regulation, commercially viable markets, investment safeguards and credible dispute resolution mechanisms would be necessary to attract private capital, technology and expertise.
Shettima also called for stronger consumer protection against arbitrary billing, poor service and unfair commercial practices, insisting that electricity operators must be held accountable for the quality of service delivered.
“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch,” he said.
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’ ability to establish credible institutions and commercially viable electricity markets.
Similarly, 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 attracting investment.
He urged stakeholders to ensure that any amendments to the legal framework built on the progress already achieved.
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.
She added that the commission was supporting newly established state regulators through peer-to-peer training and technical engagement.
President Bola Tinubu signed the Electricity Act 2023 into law in June 2023, replacing the Electric Power Sector Reform Act of 2005.
The law allows states to regulate electricity generation, transmission and distribution within their jurisdictions, while the national regulator retains oversight of interstate electricity activities.
The reforms are intended to expand state participation in the electricity sector, encourage investment and improve power supply across the country.
