Vice President Kashim Shettima has called on state governments to establish independent electricity markets and end their reliance on the Federal Government to address power supply challenges. Speaking at the National Stakeholders' Workshop on the Electricity Act 2023 at the Presidential Villa in Abuja on Wednesday, Shettima said states must use the Electricity Act 2023 to decentralise electricity governance and build power markets suited to their local economies and resources. In a speech delivered by Deputy Chief of Staff Senator Ibrahim Hadejia, the Vice President stressed that Nigeria's goal of building a competitive industrial economy would remain blocked unless electricity reforms delivered reliable power to businesses, households and public institutions.
Shettima highlighted the energy potential across different regions, pointing to solar resources in Sokoto, Borno and Katsina, gas reserves in Delta, Rivers and Bayelsa, and hydroelectric opportunities in Niger and Kebbi. He urged states to turn these resources into investments that could support agriculture, manufacturing, healthcare and education. The Vice President warned that legislation alone would not improve power supply and told states that had not yet set up electricity regulators to do so without delay. He said states needed to establish functional electricity regulatory bodies with technical competence and capacity.
The Vice President proposed a voluntary National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission, the Federal Ministry of Power, the Nigeria Governors' Forum and state regulators. This framework would allow states to share experience, strengthen their regulators and assess progress on market development, investment readiness, consumer protection and electricity access. Shettima said annual voluntary reviews should identify implementation problems, provide technical assistance and promote practical solutions without undermining the constitutional powers of states.
Shettima said government could not fund the power sector transformation alone and that private capital must arrive with technology and expertise. He stressed that transparent licensing, predictable regulation, commercially viable markets, investment safeguards and credible dispute resolution would attract investors' confidence. The Vice President also called for stronger consumer protection against arbitrary billing, poor service and unfair commercial practices, and said operators must be held accountable for service quality. The Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, said the Act's success would depend on states' ability to build credible institutions and commercially viable markets.
The Head of Compliance at the electricity commission, Hauwa Yakubu, said the commission had issued regulatory transfers to 17 states, with Akwa Ibom being the latest. The commission reported that 16 states had fully transitioned to state regulation by July. The Electricity Act 2023 was signed by President Bola Tinubu in June 2023, replacing the Electricity Power Sector Reform Act of 2005. It allows states to license generation, transmission and distribution within their borders while the national regulator oversees interstate matters. Lagos, Edo and Kaduna already had state electricity laws when the new Act was signed.