Shettima Tells States to Stop Relying on FG for Electricity Solutions

Vice President Kashim Shettima has urged state governments to end their dependence on the Federal Government for solutions to local electricity challenges and establish functional power markets under the Electricity Act 2023.

 

Shettima spoke on Wednesday at the opening of the National Stakeholders’ Workshop on the Electricity Act 2023, held at the State House Banquet Hall, Presidential Villa, Abuja.

 

In a speech delivered on his behalf by the Deputy Chief of Staff to the President, Ibrahim Hadejia, the Vice President said Nigeria’s ambition to build a competitive industrial economy would remain constrained unless electricity reforms delivered reliable power to businesses, households and public institutions.

 

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 and regulators to discuss the implementation of the law.

 

Shettima said the Act provided an opportunity to decentralise electricity governance and enable states to develop power markets suited to their economies and available resources.

 

“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.

 

“Electricity supply must become a shared responsibility, pursued with innovation and accountability across the federation. Our states must shed the habit of waiting for Abuja to provide every answer,” he said.

 

The Vice President identified solar energy potential in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, and hydroelectric opportunities in Niger and Kebbi states.

 

He urged state governments to turn these resources into investments capable of powering agriculture, manufacturing, healthcare and education.

 

Shettima warned, however, that the passage of legislation alone would not improve electricity supply, urging states that had yet to establish regulatory institutions to begin the process without delay.

 

“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.

 

To support implementation, 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 electricity regulators.

 

He said the framework would enable states to share experiences, strengthen regulatory institutions and assess 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 promote practical solutions without undermining the constitutional powers of states.

 

The Vice President also stressed that the government could not finance the transformation of the electricity sector from public funds alone, calling for increased private-sector investment.

 

“Private capital must arrive with technology and expertise. Transparent licensing, predictable regulation, commercially viable markets, investment safeguards and credible dispute resolution will earn investors’ confidence,” he added.

 

Shettima further called for stronger consumer protection against arbitrary billing, poor service and unfair commercial practices, insisting that electricity operators must be held accountable for service quality.

 

“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch,” he said.

 

The Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, Joseph Tegbe, said the success of the Act would depend on states’ ability to establish credible institutions and commercially viable electricity markets.

 

Similarly, the Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, disclosed that work was ongoing on a standard tariff framework for states aimed at protecting consumers while attracting investment.

 

Shittu urged stakeholders to ensure that any amendments to the legal framework built on the progress already achieved.

 

The Head of Compliance at the electricity regulatory commission, Hauwa Yakubu, said regulatory transfers had been issued to 17 states, with Akwa Ibom being the latest recipient.

 

She added that the commission was supporting newly established state regulators through peer-to-peer training and technical engagement.

 

President Bola Tinubu signed the Electricity Act 2023 in June 2023, replacing the Electric Power Sector Reform Act of 2005.

 

The law allows states to license electricity generation, transmission and distribution within their territories, while the national regulator retains oversight of interstate electricity matters.

 

Lagos, Edo and Kaduna states already had electricity laws when the Act was signed.