By Ayomide Otitoju
Vice President Kashim Shettima has urged state governments to take advantage of the Electricity Act 2023 by establishing functional electricity markets to attract private investment and reduce dependence on the Federal Government for solutions to local power challenges.
Shettima said Nigeria’s ambition to build a competitive industrial economy would remain constrained unless electricity reforms translated into reliable power for businesses, households and public institutions.
He spoke on Wednesday while declaring open the National Stakeholders’ Workshop on the Electricity Act 2023 at the State House Banquet Hall, Presidential Villa, Abuja.
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.
Represented by the Deputy Chief of Staff to the President, Senator Ibrahim Hadejia, the Vice President said the Act provided an opportunity to decentralise electricity governance and enable states to develop markets suited to their economic needs 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,” he said.
According to a statement by the Senior Special Assistant to the President on Media and Communications, Stanley Nkwocha, Shettima urged states to treat electricity supply as a shared responsibility and develop innovative solutions rather than rely solely on Abuja.
He identified Nigeria’s diverse energy resources as an opportunity to expand electricity access, citing solar potential in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, and hydropower opportunities in Niger and Kebbi states.
He urged state governments to convert these resources into investments capable of supporting agriculture, manufacturing, healthcare and education.
The Vice President warned, however, that legislation alone would not guarantee improved 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 strengthen implementation, Shettima proposed a National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission (NERC), Federal Ministry of Power, 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 progress in market development, investment readiness, consumer protection and electricity access.
“No State needs to purchase with failure the knowledge another State has already acquired,” he said, adding that annual reviews could identify implementation challenges, facilitate technical assistance and promote practical solutions without undermining states’ constitutional powers.
Shettima also stressed the need for private sector participation, noting that government funding alone could not meet Nigeria’s electricity infrastructure requirements.
“Government cannot finance this transformation from the treasury alone; 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 said.
He reaffirmed President Bola Tinubu’s commitment to expanding electricity access through policies and partnerships aimed at attracting investment, strengthening institutions and improving service delivery.
The Vice President 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.
He said the success of the law would ultimately be measured by its impact on ordinary Nigerians, particularly businesses requiring dependable power, young people seeking employment and investors seeking a predictable regulatory environment.
Earlier, the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, said the success of the Act would depend on states’ ability to establish credible institutions and commercially viable electricity markets.
He said state-level electricity planning would help governments respond more effectively to local demand and infrastructure needs.
The Director-General of the NGF, Abdulateef Shittu, said the forum was working to improve coordination between federal and state institutions in implementing the law.
Shittu also disclosed that efforts were underway to develop a standard tariff framework for states to protect consumers while encouraging investment and commercial sustainability.
He urged stakeholders to ensure that any amendments to the existing legal framework strengthened progress already made in electricity regulation.
In her remarks, NERC’s Deputy General Manager (Compliance) and Head of Compliance, Hauwa Yakubu, said 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 introduced a new era of multilevel electricity regulation, bringing regulatory responsibilities closer to consumers and enabling states to address their specific electricity challenges.
