Vice-President Kashim Shettima has urged state governments to end their reliance on the Federal Government for solutions to local electricity challenges and establish functional power 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 representatives of federal and state institutions, regulators and other stakeholders.
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 constrained unless electricity reforms delivered reliable power to businesses, households and public institutions.
He said the Electricity Act had created 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.
“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,” he said.
Shettima highlighted the solar energy potential of Sokoto, Borno and Katsina states, the gas resources of Delta, Rivers and Bayelsa, and the hydroelectric opportunities in Niger and Kebbi.
He urged state governments to turn these natural resources into investments capable of supporting agriculture, manufacturing, healthcare and education.
The Vice-President cautioned that the existence of legislation alone would not improve electricity supply, stressing the need for states to establish the institutions required to implement the law.
“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.
Shettima also 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.
Under the proposed framework, states would share experiences, strengthen their regulatory institutions 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,” he said.
He added that annual voluntary reviews could help identify implementation challenges, facilitate technical assistance and promote practical solutions without undermining the constitutional powers of state governments.
On financing, Shettima said the government could not fund the transformation of the electricity sector from public revenue alone, making private investment essential.
“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.
The Vice-President 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 their services.
He said the ultimate measure of the law’s success would be its impact on ordinary Nigerians.
“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch,” he added.
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 the ability of states 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.
Shittu urged stakeholders to ensure that any amendments to the electricity sector’s legal framework built on the progress already achieved.
The Head of Compliance at the electricity regulator, Hauwa Yakubu, said regulatory transfers had been issued to 17 states, with Akwa Ibom being the latest.
She said the commission was supporting emerging 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 Electricity Power Sector Reform Act 2005.
The legislation allows states to regulate and license electricity generation, transmission and distribution within their territories, while the national regulator retains oversight of interstate electricity matters.
Lagos, Edo and Kaduna were among the states that already had their own electricity laws when the Act was signed.
The regulatory transfer order for Akwa Ibom, moving oversight of intrastate electricity activities to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), was dated 18 August 2026. The order set 17 February 2027 as the deadline for completing the transfer.
The development followed a report in July that 16 states had fully transitioned to state-level electricity regulation.
Despite the reforms, challenges persist across Nigeria’s power sector. Generation companies reported in March that they were owed about ₦6.8 trillion as of the end of February.
National electricity generation has also remained around 4,000 megawatts for years, despite installed capacity of approximately 14,000 megawatts, underscoring the gap between the country’s available infrastructure and its actual power output.
