•Power transmission line
The Nigerian state has been experiencing electricity power challenges since the 1980s, and in recent periods, there have been numerous incidents of “National Grid” collapses. To find a lasting solution to the nation’s electricity blackout issue, the federal government has encouraged states within the federation to invest massively in power projects, reports Daily Independent.
The Minister of Power, Adebayo Adelabu, who made the statement in Lagos yesterday, Tuesday, October 27, 2025, explained that it is the only solution to the incessant power grid collapses at the Nigeria Energy Leadership Summit.
Despite a series of efforts to make power available to Nigerians, the power sector seems to have defied all solutions by successive governments to sanitise the industry.
Speaking at the conference, Adelabu said the federal government was aware that power centralisation could never work for Nigeria, and that was why President Bola Tinubu’s administration signed the Electricity Act in 2023.
“On legislation, the enactment of the Electricity Act 2023 remains a major milestone. Sincerely, it is the pathfinder.
“It provides a robust governance and regulatory framework for the Nigerian electricity supply industry.
“The Act devolves regulatory powers to the states, enables subnational markets, promotes competition, and empowers private participation across the value chain.
“The impact of this legislation includes decentralisation and liberalisation. A country as big as Nigeria, with almost a million square kilometres of landmass, over 200 million people, millions of businesses, thousands of institutions (health and educational institutions), 36 states plus the Federal Capital Territory, and 774 local governments —centralisation cannot work for us.
“The responsibility of providing stable electricity can never be left in the hands of the federal government.
“At the centre, you cannot, from Abuja, guarantee stable power across the country. So this is one thing that the Act has achieved —decentralisation. That has now allowed all the states or the subnationals to play in all segments of the power sector value chain —generation, transmission, distribution, and even service industries supporting the power sector,” he stated.
Presently, Adelabu said the federal government was pursuing a comprehensive agenda to reposition the power sector for sustainability, efficiency, and growth.
“This approach spans critical pillars, which include legislation, policy reforms, infrastructure development, energy transition, asset expansion, local content, and capacity development. each designed to address structural challenges, unlock private capital, and enhance service delivery across the electricity value chain, to achieve functional, reliable, affordable electricity throughout Nigeria to power our households, our businesses, our offices, our institutions, and our industries, thereby improving the economic prosperity of our people,” he noted.
The minister maintained that the private sector must get involved if the nation is serious about having a reliable power sector.
“The investment required can never be made available by the government. There are too many competing sectors—education, health, defence, works, aviation, and so on. They all compete for the limited funds from the federal government.
“So, given the level of investment required in this sector, we need private capital infusion, both local and foreign. The developed nations have done their bit, and they are still supporting us, but it can never be enough if private sector investors are not involved. That’s one advantage of this legislation, and I believe the states and private sector investors are up to the task.
“The Act devolves regulatory powers to the states, enables supply chain markets, promotes competition, and empowers private participation across the value chain. This represents a clear shift towards a liberalised and investment-friendly electricity market,” he stressed.
Adelabu said 15 states have received regulatory autonomy and established subnational electricity markets, with one, Enugu, fully operationalised through the Enugu Electricity Regulatory Commission.
“I believe other states will follow suit in operationalising the autonomy granted, with full collaboration of the national regulator. We are working actively with these states to ensure strong alignment between the wholesale market and the retail market.
“In this regard, we believe the active involvement of the state governments, particularly in the off-grid segment, is critical, given the series of roundtable engagements held with governors by the Rural Electrification Agency, as well as ongoing efforts to closely track the distribution companies’ performances within their respective jurisdictions.
“The Managing Director of REA, Abba Aliyu, has held meetings with almost 20 states regarding the national electrification programme across the country, and this is an opportunity and a platform for the subnationals to leverage and start to activate the autonomy they have been granted,” Adelabu emphasised.
