Shettima tells states to build own electricity markets under 2023 law

Vice President Kashim Shettima has asked state governments to stop looking to Abuja for every answer on electricity and to start running their own power markets under the Electricity Act 2023.

He spoke on Wednesday at a national stakeholders' workshop on the law, held at the State House Banquet Hall in Abuja, according to a statement by his spokesman, Stanley Nkwocha. The Vice President was represented by the Deputy Chief of Staff to the President, Senator Ibrahim Hassan Hadejia.

The message matters for ordinary Nigerians because unreliable power raises the cost of running a business, keeps hospital equipment idle and pushes households onto costly generators. Shettima said the country's industrial ambitions would stay out of reach unless the reforms turn into steady supply for homes, companies and public institutions.

States told to set up regulators

Under the 2023 law, states can set up and regulate electricity markets inside their own borders, within the constitution and other laws. Shettima said Nigeria's size and spread of resources make that shift necessary.

He listed the different energy options across the country: solar in Sokoto, Borno and Katsina; gas in Delta, Rivers and Bayelsa; and hydro power in Niger and Kebbi. States, he said, should turn these into investments that serve farming, manufacturing, healthcare and schools.

He warned that passing a law alone will not fix supply. States that have not yet created their regulatory bodies should start now, he said, and build institutions with real technical capacity.

"Our States must shed the habit of waiting for Abuja to provide every answer," Shettima said.

He proposed a voluntary peer review framework bringing together the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the Nigeria Governors' Forum and state regulators. Under it, states would compare notes each year on market growth, investment readiness, consumer protection and access.

He also said government money alone cannot fund the needed infrastructure. Private investors, he said, will come with technology and expertise only if licensing is transparent, regulation is predictable and disputes can be settled credibly.

On consumer protection, Shettima said operators must be held to account for poor service and unfair billing. "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 stood in for the Minister of Power, said the law's success depends on states building credible institutions and viable markets.

The Director-General of the Nigeria Governors' Forum, Dr Abdulateef O. T. Shittu, said the forum is working to improve coordination between federal and state bodies, and that a standard tariff framework for states is in development.

Hauwa Yakubu, Head of Compliance at NERC, said the commission has issued regulatory transfers to 17 states, with Akwa Ibom the latest.

What happens next

The proposed peer review is voluntary, so its take-off depends on states agreeing to join. The other test is how quickly the remaining states set up regulators and whether the planned tariff framework protects consumers while still drawing investors.