Shettima Challenges States to End Dependence on FG for Electricity, Attract Private Investors

Vice President Kashim Shettima has challenged state governments to take control of electricity development within their jurisdictions, establish functional power markets and attract private investment rather than rely solely on the Federal Government to address their electricity challenges.

Shettima said Nigeria’s ambition to build a competitive industrial economy would remain elusive unless ongoing electricity reforms translated into reliable and affordable power 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 Electricity Act had created an opportunity for states to decentralise electricity governance and develop markets tailored to their economic needs and available energy resources.

He urged state governments to move beyond waiting for federal intervention and assume greater responsibility for improving electricity supply.

“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,” he said.

According to him, electricity supply must become a shared responsibility across the federation, driven by innovation, accountability and effective partnerships between governments and private investors.

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 assess the implementation of the law.

States Urged to Exploit Energy Resources

Shettima identified Nigeria’s diverse energy resources as an opportunity for states to expand electricity access and stimulate economic growth.

He cited the solar energy potential of Sokoto, Borno and Katsina states, the gas resources of Delta, Rivers and Bayelsa, and the hydroelectric opportunities available in Niger and Kebbi.

He urged state governments to convert these natural advantages into investments capable of supporting agriculture, manufacturing, healthcare and education.

The Vice President warned, however, that the passage of legislation alone would not improve electricity supply without effective institutions and regulatory capacity.

He called on states that had yet to establish electricity regulatory institutions to commence the necessary legislative and institutional preparations.

“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.

Shettima Proposes National Peer Review Framework

To accelerate implementation of the Electricity Act, the Vice President 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 said the proposed voluntary framework would enable states to share experiences, strengthen regulatory institutions and assess their 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,” Shettima said.

He explained that annual voluntary reviews would help identify implementation challenges, facilitate technical assistance and encourage practical solutions while respecting the constitutional powers of state governments.

The initiative, he added, would provide an avenue for states to learn from one another and avoid repeating mistakes already encountered by other jurisdictions.

Private Investment Critical to Power Reforms

Shettima also stressed that private sector participation would be critical to the success of Nigeria’s electricity reforms, noting that government resources alone could not finance the country’s extensive power infrastructure needs.

“Government cannot finance this transformation from the treasury alone; private capital must arrive with technology and expertise,” he said.

He identified transparent licensing, predictable regulation, commercially viable electricity markets, investment safeguards and credible dispute resolution mechanisms as essential to attracting investors.

The Vice President reaffirmed President Bola Tinubu’s commitment to expanding electricity access through policies designed to encourage investment, strengthen institutions and improve service delivery.

He also called for stronger consumer protection measures to address arbitrary billing, poor service and unfair commercial practices, insisting that electricity operators must be held accountable for the quality of service delivered to customers.

“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch,” he said, adding that entrepreneurs needed dependable electricity, young Nigerians needed employment opportunities and investors required transparent rules to operate successfully.

States, Regulators Outline Implementation Plans

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 regulatory institutions and commercially sustainable electricity markets.

He noted that state-level electricity planning would enable governments to respond more effectively to local demand and infrastructure requirements.

The Director-General of the Nigeria Governors’ Forum, Dr Abdulateef O. T. Shittu, said the forum was working to strengthen coordination between federal and state institutions to support implementation of the legislation.

Shittu disclosed that efforts were underway to develop a standard tariff framework for states that would protect consumers while supporting investment and commercial sustainability.

He urged stakeholders to ensure that any amendments to the existing legal framework strengthened, rather than undermined, the progress already made in electricity regulation.

Also speaking, 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 Yakubu, the Electricity Act 2023 ushered in a new era of multilevel electricity regulation by bringing regulatory responsibilities closer to consumers and enabling states to develop solutions suited to their individual electricity needs.

The implementation of the Act is expected to reshape electricity governance across Nigeria by giving states greater responsibility for developing and regulating intrastate electricity markets, subject to the applicable constitutional and statutory provisions.