Kashim Shettima, Nigeria’s vice president, has urged state governments to establish functional electricity markets and attract private investment, saying they must take responsibility for addressing local power challenges rather than depend on the federal government.
Shettima 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 spoke on Wednesday at the National Stakeholders’ Workshop on the Electricity Act 2023 in Abuja, where he called for faster implementation of the law, which allows states to establish and regulate intrastate electricity markets within the applicable constitutional and legal framework.
Represented by Ibrahim Hassan Hadejia, deputy chief of staff to the president, the vice president said states needed to move beyond policy commitments and build the institutions required to attract investment and expand electricity access.
‘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.
He urged states that had yet to establish electricity regulatory institutions to begin the process, warning that the legislation would not improve supply without effective implementation.
Shettima also 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 and state electricity regulators.
The proposed voluntary framework would allow states to assess their progress in establishing electricity markets, attracting investment, protecting consumers and expanding access, while sharing lessons and technical expertise.
‘No state needs to purchase with failure the knowledge another state has already acquired,’ he said.
The push for state-led electricity markets follows the Electricity Act 2023, which opened the sector to greater subnational participation and created a pathway for states to develop their own electricity markets. However, implementation requires regulatory capacity, investment and coordination between federal and state institutions.
Shettima said states could leverage their respective energy resources to develop electricity markets suited to local economic needs. He cited solar potential in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, and hydropower opportunities in Niger and Kebbi.
He also said government funding alone would not meet the country’s electricity infrastructure needs, urging states to establish transparent licensing processes, predictable regulations and commercially viable markets to attract private capital.
‘Government cannot finance this transformation from the treasury alone; private capital must arrive with technology and expertise,’ he said.
The vice president called for stronger consumer protection, including safeguards against arbitrary billing, poor service and unfair commercial practices, stressing that electricity operators must be held accountable for service quality.
Earlier, Mahmuda Mamman, permanent secretary of the federal Ministry of Power, said the success of the Electricity Act would depend on states’ ability to establish credible regulatory institutions and commercially sustainable markets.
Abdulateef Shittu, director-general of the Nigeria Governors’ Forum, said the forum was working to improve coordination between federal and state institutions. He also disclosed that efforts were underway to develop a standard tariff framework for states that would protect consumers while supporting investment and commercial viability.
Hauwa Yakubu, deputy general manager for compliance at NERC, said the commission had issued regulatory transfers to 17 states, with Akwa Ibom the latest. She added that NERC was supporting emerging state regulators through technical engagement and peer-to-peer training.
The Electricity Act 2023 provides a framework for decentralising electricity regulation, enabling states to address local supply challenges and develop markets based on their demand, resources and infrastructure needs.