Vice-President Kashim Shettima has urged state governments to stop relying solely on the Federal Government to address electricity supply problems and take advantage of the Electricity Act 2023 to establish functional power markets within their jurisdictions.

Shettima made the call 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.

The workshop brought together federal and state institutions, regulators and other stakeholders to discuss the implementation of the law and opportunities for improving electricity access across the country.

Represented by the Deputy Chief of Staff to the President, Senator Ibrahim Hadejia, the Vice-President said Nigeria’s ambition to develop a competitive industrial economy would remain difficult to achieve unless electricity reforms resulted in dependable power for businesses, households and public institutions.

He explained that the Electricity Act had created an opportunity to decentralise electricity governance, allowing states to develop and regulate electricity markets suited to their economic needs and available resources.

According to him, electricity supply should become a shared responsibility, with states taking greater initiative rather than waiting for the Federal Government to provide every solution.

Shettima identified the country’s diverse energy resources as an opportunity for states to expand electricity access.

He cited solar energy potential in Sokoto, Borno and Katsina, natural gas resources in Delta, Rivers and Bayelsa, as well as hydroelectric opportunities in Niger and Kebbi states.

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

The Vice-President warned, however, that the passage of legislation alone would not improve electricity supply, stressing that states yet to establish regulatory institutions must begin the necessary legislative and administrative processes without delay.

He said functional electricity regulatory bodies with adequate technical expertise and institutional capacity were essential to implementing the law effectively.

To promote cooperation among states, Shettima 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 proposed framework would enable states to exchange experiences, strengthen their regulatory institutions and assess progress in electricity market development, investment readiness, consumer protection and access to power.

Shettima added that annual reviews could help identify implementation challenges, facilitate technical assistance and encourage states to adopt practical solutions already tested elsewhere, without undermining their constitutional powers.

The Vice-President also stressed the importance of private-sector participation, noting that government funding alone would not be sufficient to finance the transformation required in the electricity industry.

He said transparent licensing procedures, predictable regulations, commercially viable markets, investment safeguards and credible dispute-resolution mechanisms would be necessary to attract investors.

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 the quality of their services.

He said the success of the Electricity Act would ultimately be measured by whether Nigerians experienced improvements in electricity supply in their homes, businesses and workplaces.

Earlier, the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, Joseph Tegbe, said effective implementation would depend on states establishing credible institutions and commercially sustainable electricity markets.

The Director-General of the Nigeria Governors’ Forum, Abdulateef Shittu, disclosed that work was ongoing on a standard tariff framework intended to protect consumers while encouraging investment in state electricity markets.

Meanwhile, the Head of Compliance at the Nigerian Electricity Regulatory Commission, Hauwa Yakubu, said the commission had issued regulatory transfer orders to 17 states, with Akwa Ibom among the latest to assume responsibility for regulating its intrastate electricity market.

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

President Bola Ahmed Tinubu signed the Electricity Act into law in June 2023, replacing the Electricity Power Sector Reform Act of 2005. The legislation allows states to regulate electricity generation, transmission and distribution within their territories, while the national regulator retains responsibility for interstate electricity matters.

The push for state-led electricity markets comes amid persistent challenges in the power sector. Electricity generation companies reported in March that they were owed approximately ₦6.8 trillion at the end of February, while national electricity generation had remained around 4,000 megawatts for years despite an installed capacity of about 14,000 megawatts.