•Power transmission line
The federal government and investors in the Nigerian Electricity Supply Industry (NESI) have expressed differing views on whether state governments currently have the capacity to regulate electricity markets within their jurisdictions.
The disagreement surfaced at an event in Abuja marking the 20th anniversary of the Nigerian Electricity Regulatory Commission (NERC), reports Vanguard.
Speaking on behalf of the federal government, the Minister of Power, Chief Adebayo Adelabu, said the Electricity Act empowers states to leverage local resources to meet specific energy needs. Represented by the Director of Distribution, Umar Mustapha, Chief Adelabu emphasized collaboration between federal and state governments, as well as the private sector, to enhance power delivery.
He said, “The Act allows states, many of which are larger than some neighbouring countries, to take charge of their destinies. They can leverage solar, hydro, or wind resources to build grids that meet their economic and social needs. By opening the value chain to states and private investors while fostering competition, consumers will have more options, better services, and innovative pricing.”
Adelabu cautioned against hasty amendments to the Act, noting that it should first be fully implemented. He added that the Federal Ministry of Power is developing a National Electricity Policy Coordination Framework to align federal and state actions, support the establishment of new state regulators, and strengthen investor confidence through policy consistency and regulatory clarity.
However, investors expressed reservations. The Group Managing Director/CEO of Sahara Power Group, Mr. Kola Adesina, argued that most states lack the resources to manage electricity markets effectively and called for urgent amendments to address gaps.
He stated, “The states don’t have the wherewithal to build electricity infrastructure. Breaking down inefficiency into another level of inefficiency only spreads the problem. Policy and regulation must be aligned, and gaps in the current Act need to be addressed quickly.”
At the event, NERC Vice Chairman, Musiliu Oseni, reflected on the commission’s two decades of service, acknowledging progress while highlighting ongoing challenges. He noted that 15 states have received transfer orders, 11 completed the six-month transitional period, but only 8 are fully operational. He also cited Edo, Ogun, and Oyo as states yet to operationalize their regulatory commissions.
Oseni advised state regulators to maintain professionalism, stating, “Regulation is not populism or politics; it requires objectivity, analytical rigour, and independence. Remember, there must be a utility before you can be called a regulator.”
The debate underscores ongoing discussions about decentralising electricity regulation in Nigeria and the readiness of subnational governments to manage energy markets effectively.
