Vice President Kashim Shettima has urged state governments to take control of their electricity markets and reduce dependence on the Federal Government by leveraging the Electricity Act 2023 to address their power challenges.
Shettima said Nigeria’s ambition to build a competitive industrial economy would remain constrained unless ongoing electricity reforms translated into reliable power supply for businesses, households and public institutions.
The Vice President spoke on Wednesday while declaring open the National Stakeholders’ Workshop on the Electricity Act 2023 at the State House Banquet Hall, Presidential Villa, Abuja.
Represented by the Deputy Chief of Staff to the President, Senator Ibrahim Hassan Hadejia, Shettima said the Act provided states with an opportunity to establish and regulate intrastate electricity markets tailored to their economic needs and available energy resources.
He urged state governments to move away from relying on Abuja for solutions to their electricity challenges and take responsibility for developing sustainable power systems.
“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 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 review the implementation of the legislation.
Shettima identified the country’s diverse energy resources as an opportunity for states to expand electricity access and stimulate economic development.
He cited the solar energy potential of Sokoto, Borno and Katsina states, the gas resources of Delta, Rivers and Bayelsa, as well as hydroelectric opportunities in Niger and Kebbi states.
He urged state governments to attract investments that would harness these resources to support agriculture, manufacturing, healthcare and education.
However, the Vice President warned that the passage of legislation alone would not guarantee improved electricity supply, stressing the need for states to establish functional regulatory institutions.
“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 accelerate implementation of the Act, Shettima proposed a National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the Nigeria Governors’ Forum (NGF) and state electricity regulators.
He explained that the proposed voluntary framework would enable states to share experiences, strengthen regulatory capacity 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.
According to him, annual voluntary reviews would help identify implementation challenges, facilitate technical assistance and promote practical solutions without undermining the constitutional powers of state governments.
Shettima also emphasised the importance of private sector participation, noting that government funding alone would not be sufficient to meet the country’s electricity infrastructure needs.
He said transparent licensing procedures, predictable regulations, commercially viable markets, investment safeguards and credible dispute resolution mechanisms were essential to attracting private capital.
“Government cannot finance this transformation from the treasury alone; private capital must arrive with technology and expertise,” he stated.
The Vice President reaffirmed President Bola Tinubu’s commitment to expanding electricity access through policies aimed at attracting investment, strengthening institutions and improving service delivery.
He also called for stronger consumer protection measures against arbitrary billing, poor service and unfair commercial practices, insisting that electricity operators must be held accountable for the quality of their services.
“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch. Entrepreneurs need dependable power, young Nigerians need employment, and investors need transparent rules under which enterprise can prosper,” he added.
Earlier, the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, said the success of the Electricity Act would depend on the ability of states to establish credible institutions and commercially viable electricity markets.
He noted that state-level electricity planning would enable governments to respond more effectively to local demand and infrastructure requirements.
Similarly, the Director-General of the Nigeria Governors’ Forum, Dr Abdulateef O. T. Shittu, said the forum was working to improve coordination between federal and state institutions to ensure effective implementation of the Act.
Shittu disclosed that efforts were underway to develop a standard tariff framework for states that would protect consumers while encouraging investment and ensuring the commercial sustainability of electricity markets.
He urged stakeholders to ensure that any proposed amendments to the existing legal framework strengthened the progress already made in electricity regulation.
In her remarks, the Deputy General Manager (Compliance) and Head of Compliance at NERC, Hauwa Yakubu, disclosed that the commission had issued regulatory transfers to 17 states, with Akwa Ibom being the latest.
She said NERC had continued to support emerging state electricity regulators through peer-to-peer training and technical engagement.
According to her, the Electricity Act 2023 ushered in a new era of multilevel electricity regulation by bringing regulatory responsibilities closer to consumers and enabling states to address their specific electricity challenges.
