Shettima wants yearly check on states' electricity reforms

Vice-President Kashim Shettima has suggested that states' electricity markets be reviewed every year, so that progress under the Electricity Act 2023 can be tracked and problems spotted early.

Shettima, who was represented by the Deputy Chief of Staff to the President, Senator Ibrahim Hadejia, made the proposal on Wednesday in Abuja. The occasion was the opening of a two-day National Stakeholders' Workshop on the Electricity Act 2023, themed "Empowering the States."

Under his plan, a National Electricity Reform Review and Implementation Framework would bring together the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the Nigeria Governors' Forum and the regulators states have set up. States would join voluntarily, and each state's constitutional powers would be respected.

The idea is for states to compare notes, share what is working and name what is holding them back in building their markets, drawing investors and protecting consumers.

What it means for Nigerians

The Electricity Act 2023, which followed a constitutional amendment, allows states to make laws and regulate electricity generation, transmission and distribution inside their own territory. NERC keeps charge of power that crosses state lines or national borders.

For the ordinary Nigerian, the promise is simple: a regulator closer to home that can respond faster to local problems. Shettima put it plainly, saying the average Nigerian "is not interested in the complexities of electricity regulation. He wants electricity that works."

He asked states that have not yet set up electricity regulatory commissions to start the legislative and institutional work without delay, and warned against commissions that exist only on paper. In his words, the reform's success should be judged by "the electricity generated, investments attracted, jobs created, reliability of supply and improvements in the lives of our citizens," not by how many commissions are created.

He also said government alone cannot supply the capital, technology and expertise the sector needs, and urged states to run transparent licensing, keep rules predictable and design markets that can pay for themselves.

Minister of Power Joseph Tegbe, represented by the ministry's Permanent Secretary, made the same point: "A regulator on paper is not a functioning market." He said state regulators need capable commissioners, technical and legal staff, open tariff and licensing processes, and enough funding and independence to do the job.

Tegbe also cautioned that handing over regulation does not wipe out existing contracts and financial obligations, and that states will still need clear arrangements with the national grid.

NERC Chairman Musiliu Oseni, represented by Hauwa Yakubu, said the commission has issued transfer orders to 17 states that met the requirements of the Act. He said the shift brings regulation closer to consumers but must be managed carefully to keep the market stable and investors confident.

Nigeria Governors' Forum Chairman Abdulrahman AbdulRazaq, represented by the forum's Director-General, Abdulateef Shittu, said proposed amendments to the Act must not weaken states' powers. He warned that confusion over who regulates what can raise compliance costs, delay projects and scare off investors.

What happens next

The workshop is expected to produce recommendations on how the review framework would work, how state regulators can be strengthened and how progress would be monitored. Any change to the Act would still need to pass through the legislative process.