Vice President Kashim Shettima has called on 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 at the opening of the National Stakeholders’ Workshop on the Electricity Act 2023, held at the State House Banquet Hall, Presidential Villa, Abuja, on Wednesday.

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, alongside regulatory bodies.

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 said the legislation provides an opportunity to decentralise electricity governance, enabling 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 identified solar energy potential in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, and hydroelectric opportunities in Niger and Kebbi as resources states could harness to support agriculture, manufacturing, healthcare and education.

He cautioned, however, that passing legislation alone would not improve electricity supply. States that had yet to establish regulatory institutions, he said, needed to begin the process 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 strengthen implementation, the Vice President 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.

Under the proposed framework, states would exchange experiences, improve regulatory capacity and assess their progress in electricity market development, investment readiness, consumer protection and access to electricity.

According to him, “No state needs to purchase with failure the knowledge another state has already acquired.”

He said annual voluntary reviews would help identify implementation challenges, facilitate technical assistance and encourage practical solutions while respecting the constitutional powers of individual states.

Shettima also stressed that the government could not fund the electricity sector’s transformation solely through public revenue, highlighting the need for private investment supported by technology and expertise.

“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 added.

He further called for stronger consumer protection against arbitrary billing, poor service delivery and unfair commercial practices, stressing that electricity operators must be held accountable for the quality of their services.

The Vice President said the impact of the legislation would ultimately be measured by consumers’ experiences with electricity supply.

“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch.”

The Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, Joseph Tegbe, said the Act’s success would depend on states establishing credible institutions and commercially viable 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. He said the framework was intended to protect consumers while attracting investment.

Shittu also urged stakeholders to ensure that any amendments to the existing legal framework built on progress already achieved.

Meanwhile, 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 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 already had state electricity laws when the Act was signed.

The commission’s order transferring responsibility for regulating intrastate electricity activities in Akwa Ibom to the state regulator, AKSERC, was dated August 18, 2026. The order required the transfer to be completed by February 17, 2027.

In July, the commission had reported that 16 states had completed their transitions to state-level electricity regulation.

The reforms come amid persistent challenges in Nigeria’s electricity sector. Generation companies said in March that they were owed approximately N6.8tn as of the end of February. National electricity generation had also remained around 4,000 megawatts for years, despite an installed capacity of approximately 14,000 megawatts.

Source: Punch