Vice President Kashim Shettima yesterday challenged the state governments to stop depending on the Federal Government for solutions to their electricity challenges.
He also urged them to take responsibility for developing functional power markets capable of driving industrialisation job creation and economic growth.
Shettima declared that the era of waiting for Abuja to address local electricity needs must give way to greater state ownership regulatory independence and private sector investment as provided for in the Electricity Act 2023.
The Electricity Act decentralizes the power sector from the Exclusive Legislative List to Concurrent List – allowing states to participate in power generation and distribution.
No fewer than 17 states have taken advantage of the new law to obtain electricity licences.
The Vice President spoke at the National Stakeholders’ Workshop on the Electricity Act 2023 at the State House Banquet Hall Presidential Villa Abuja.
He warned that Nigeria’s ambition to become a competitive industrial economy would remain elusive without reliable electricity for businesses households and public institutions.
His charge came as the Nigerian Electricity Regulatory Commission (NERC) said regulatory responsibilities had been transferred to 17 states with Akwa Ibom being the latest beneficiary of the decentralisation initiative.
Represented by the Deputy Chief of Staff to the President Senator Ibrahim Hassan Hadejia Shettima said the Electricity Act had fundamentally altered the nation’s power governance structure by creating opportunities for states to establish and regulate their own electricity markets within the constitutional framework.
He urged governors to seize the opportunities provided by the legislation rather than continue to depend on federal intervention to resolve electricity supply challenges within their jurisdictions.
‘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’ Shettima declared.
The Vice President stressed that Nigeria’s diverse energy resources presented enormous opportunities for states to develop electricity solutions tailored to their geographical advantages and economic priorities.
He identified the abundant solar energy potential in Sokoto Borno and Katsina states natural gas resources in Delta Rivers and Bayelsa as well as hydroelectric opportunities in Niger and Kebbi as assets that could be harnessed to expand power generation and improve electricity access.
According to him state governments must move beyond recognising these resources to attracting investments that would translate them into dependable electricity for agricultural production manufacturing healthcare delivery education and other critical sectors.
Shettima however cautioned that the passage of the Electricity Act alone would not resolve the country’s longstanding power challenges unless states demonstrated the political will and institutional capacity to implement its provisions.
He consequently urged states yet to establish the necessary legislative and regulatory structures to act without further delay stressing that competent institutions were indispensable to building credible electricity markets.
‘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 reforms the Vice President proposed the establishment of a National Electricity Reform Peer Review and Implementation Framework to promote cooperation knowledge-sharing and institutional development among states.
He explained that the proposed arrangement would bring together NERC the Federal Ministry of Power the Nigeria Governors’ Forum (NGF) and state electricity regulators to assess progress and exchange practical experiences in developing electricity markets.
Shettima argued that states entering the electricity market should be able to benefit from the experiences of those that had made progress rather than repeat avoidable mistakes.
‘No State needs to purchase with failure the knowledge another State has already acquired’ he said.
He proposed annual voluntary reviews to identify implementation challenges strengthen regulatory capacity and facilitate practical solutions without compromising the constitutional powers of individual states.
The Vice President also identified private investment as a critical factor in addressing Nigeria’s electricity infrastructure deficit warning that public financing alone could not deliver the scale of transformation required.
He charged state governments and regulators to establish investment-friendly environments through transparent licensing arrangements predictable regulations commercially viable electricity markets and credible dispute resolution mechanisms.
‘Government cannot finance this transformation from the treasury alone; 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 stated.
Shettima reaffirmed the commitment of President Bola Tinubu’s administration to expanding electricity access through policies that encourage investment strengthen regulatory institutions and improve service delivery.
The Permanent Secretary of the Federal Ministry of Power Mahmuda Mamman who represented the Minister of Power Joseph Tegbe said the success of the Electricity Act would depend largely on the ability of states to establish credible regulatory institutions and commercially sustainable electricity markets.
Mamman noted that decentralised electricity planning would enable state governments to respond more effectively to local electricity demand infrastructure requirements and investment opportunities.
He stressed the importance of developing the technical and institutional capacity required to translate the opportunities provided by the legislation into improvements in electricity supply.
The Director-General of the Nigeria Governors’ Forum (NGF) Dr. Abdulateef O. T. Shittu said the forum was working to strengthen coordination between federal and state institutions to facilitate the implementation of the Electricity Act.
Shittu said efforts were underway to develop a standard tariff framework for states to ensure adequate consumer protection while promoting investment and the commercial sustainability of electricity markets.
He urged stakeholders to ensure that any proposed amendments to the existing legal framework consolidated the progress already recorded rather than undermining ongoing regulatory reforms.
Deputy General Manager (Compliance) and Head of Compliance at NERC Hauwa Yakubu explained that the commission had approved the transfer of electricity regulatory responsibilities to 17 states with Akwa Ibom being the most recent.
Yakubu said NERC had continued to provide technical support to emerging state electricity regulatory institutions through peer-to-peer training and sustained engagement to strengthen their operational capacity.
She explained that the Electricity Act 2023 had ushered in a new era of multilevel electricity regulation bringing decision-making closer to consumers and empowering state governments to address their peculiar power supply challenges.
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 electricity regulators and other stakeholders to examine the opportunities challenges and implementation requirements of the legislation.