The Federal Government has urged the 36 states to take over power generation, transmission, and distribution, to solve the power crisis in the country.
Minister of Power, Adebayo Adelabu, said this in Lagos at the Nigeria Energy Leadership Summit.
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,” he stated.
Continuing, the minister noted that “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.”
Adelabu said 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 sub-nationals to play in all segments of the power sector value chain—generation, transmission, distribution, and even service industries supporting the power sector,” he stated.
Adelabu said the Federal Government was currently 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 since the passage of the Electricity Act, 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.
He charged the states to raise the bar.
“The states must raise the bar. I know Lagos State said it is ready to lead the pack. Let that not end on our lips. We must take the necessary steps to achieve this. They say that cows don’t make milk we milk the cows. You need to take steps to ensure you activate this autonomy. We must take that step to milk the cow and make it up.
“Beyond that, we need to start engaging local and foreign investors at the state level. We have the autonomy. There are lots of investors interested in establishing generation outfits in your states. It could be thermal, small hydro, solar, or a wind farm to generate power in your states. It guarantees the energy security of your state. A lot of our states are bigger than some West African countries, and they’re running as countries. Who says we cannot run our states the way these people run their countries?
“We have the autonomy; we have the platform legally now. So, I believe we need to take the right step and get more involved, especially when it comes to the rural areas, the unserved communities, the underserved communities, and the semi-urban areas. You can start from that, not just providing electricity to households or lighting up households with solar systems and all that. You can do that, but it must include productive use of equipment that can boost the prosperity of your people at the rural level.
“There is a rural economy with huge potential, not just in agriculture alone. There are some small-scale enterprises in the local environment that can be boosted by supplying reliable electricity,” he added.
