Vice President Kashim Shettima challenges states to end dependence on Abuja for electricity.
Vice President Kashim Shettima urged state governments on Wednesday to stop relying on the Federal Government to solve local power challenges. Speaking at the State House Banquet Hall in Abuja, he emphasized the need for functional electricity markets under the Electricity Act 2023.
The National Stakeholders Workshop focused on unlocking opportunities for sustainable energy development and economic growth in Nigeria. Federal and state institutions gathered to discuss decentralizing electricity governance to build markets tailored to local resources.
Senator Ibrahim Hadejia, Deputy Chief of Staff to the President, delivered the address on behalf of Shettima, according to information published by punchng.
Decentralizing Electricity Governance in Nigeria
Shettima stated that the Electricity Act 2023 empowers states to develop and regulate intrastate electricity markets. The diverse endowments of the nation require this decentralization, making electricity supply a shared responsibility across the federation.
He highlighted specific regional potentials, such as solar power in Sokoto, Borno, and Katsina, gas resources in Delta, Rivers, and Bayelsa, and hydroelectric opportunities in Niger and Kebbi.
Establishing State Electricity Regulators
Warning that legislation cannot implement itself, Shettima instructed states without regulators to establish them promptly. These bodies require technical competence and capacity to handle intrastate electricity markets effectively.
The Director-General of the Nigeria Governors Forum, Dr. Abdulateef Shittu, noted that work is underway on a standard tariff framework. Meanwhile, Hauwa Yakubu from the electricity commission confirmed regulatory transfers to 17 states.
Private Capital and Consumer Protection
Shettima stressed that government treasuries alone cannot finance the energy transformation, arguing that private capital must arrive with technology and expertise. Transparent licensing and credible dispute resolution will earn investor confidence.
Furthermore, he called for stronger consumer protection against arbitrary billing and poor service. Operators must be held fully accountable for service quality, as the final verdict on the law rests with the consumers.
Implementation and Historical Background
President Bola Tinubu signed the Electricity Act 2023 in June 2023, replacing the 2005 legislation. States like Lagos, Edo, and Kaduna already had local laws, while Akwa Ibom recently transitioned its regulation to AKSERC.
To support this transition, Shettima proposed a voluntary National Electricity Reform Peer Review Framework. This involves the Nigerian Electricity Regulatory Commission and the Federal Ministry of Power sharing experiences without undermining state powers.
Frequently Asked Questions
What did Vice President Kashim Shettima tell state governments regarding power supply?
Shettima urged state governments to end their dependence on the Federal Government and set up functional electricity markets under the Electricity Act 2023.
What does the Electricity Act 2023 allow states to do in Nigeria?
The Act empowers states to develop, regulate, and license intrastate electricity generation, transmission, and distribution within their borders.
Which federal and state bodies are involved in the power sector reforms?
Key entities include the Nigerian Electricity Regulatory Commission, the Federal Ministry of Power, the Nigeria Governors Forum, and various state regulatory bodies.
How many states have transitioned their electricity regulation?
The Nigerian Electricity Regulatory Commission reported that 16 states had fully transitioned by July, with 17 states receiving regulatory transfers overall.
