Vice President Kashim Shettima on Wednesday urged state governments to end their dependence on the Federal Government for solutions to local power problems and to set up functional electricity markets under the Electricity Act 2023.
He spoke at the opening of 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 and regulators.
In a speech delivered on his behalf by the Deputy Chief of Staff to the President, Ibrahim Hadejia, on Wednesday, Shettima said Nigeria’s ambition of building a competitive industrial economy would remain constrained unless electricity reforms produced reliable power for businesses, households and public institutions.
He said the Act had created an opportunity to decentralise electricity governance and let states build power markets suited to their economies and 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.
“Electricity supply must become a shared responsibility, pursued with innovation and accountability across the federation. Our states must shed the habit of waiting for Abuja to provide every answer,” he said.
The Vice President cited solar potential in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, and hydroelectric opportunities in Niger and Kebbi, and urged states to turn them into investments that could power agriculture, manufacturing, healthcare and education.
He warned that a law alone would not improve supply, and told states that had yet to set up regulators to start 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.
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 regulators.
He said states would use it to share experience, strengthen their regulators and assess progress on market development, investment readiness, consumer protection and electricity access.
According to him, “No state needs to purchase with failure the knowledge another state has already acquired.”
Shettima said annual voluntary reviews should identify implementation problems, facilitate technical assistance and promote practical solutions without undermining the constitutional powers of states.
The Vice President said government could not finance the 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 added.
He also called for stronger consumer protection against arbitrary billing, poor service and unfair commercial practices, and said operators must be held accountable for service quality.
The VP argued, “The final verdict on this law will be delivered wherever a Nigerian reaches for a switch.”
The Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, Joseph Tegbe, said the Act’s success would depend on states’ ability to build credible institutions and commercially viable markets.
The Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, said work was under way on a standard tariff framework for states to protect consumers while attracting investment.
He urged stakeholders to ensure that any amendment to the legal framework was built on progress already made.
The Head of Compliance at the Electricity Commission, Hauwa Yakubu, said it had issued regulatory transfers to 17 states, the latest being Akwa Ibom.
She noted that the commission was supporting new state regulators through peer-to-peer training and technical engagement.
President Bola Tinubu signed the Electricity Act 2023 in June 2023, replacing the Electricity Power Sector Reform Act of 2005.
It allows states to license generation, transmission and distribution within their borders, while the national regulator keeps oversight of interstate matters.
Lagos, Edo and Kaduna already had state electricity laws when it was signed.
The commission’s order moving Akwa Ibom’s intrastate regulation to the state regulator, AKSERC, was dated August 18, 2026.
At the time, it mandated that transfers be completed by February 17, 2027, and that the commission had reported 16 states fully transitioned in July.
Generation companies said in March that they were owed about N6.8tn at the end of February and that national output had hovered around 4,000 megawatts for years, against installed capacity of about 14,000 megawatts.