Shettima Urges States to Build Independent Electricity Markets

Vice President Kashim Shettima urged Nigerian state governments to end their reliance on the federal government for power solutions and establish independent electricity markets. Speaking at a National Stakeholders’ Workshop in Abuja, Shettima emphasized that decentralizing governance allows states to leverage local resources, such as solar in the north and gas in the south, to power industry and infrastructure.

To support this transition, Shettima proposed a voluntary National Electricity Reform Peer Review and Implementation Framework. This framework would conduct annual reviews to track the implementation of the Electricity Act 2023, identify bottlenecks, and facilitate knowledge sharing between states. He warned that legislation alone is insufficient and called for the creation of functional regulatory commissions rather than "regulators on paper," noting that private capital and technology must supplement government funding to transform infrastructure.

The Nigerian Electricity Regulatory Commission has already issued regulatory transfer orders to 17 states, including Akwa Ibom, allowing them to assume oversight of their respective markets. While the national regulator maintains authority over interstate matters, the Act allows states to license generation, transmission, and distribution within their borders.

Minister of Power Joseph Tegbe stated that success depends on building credible institutions, while Nigeria Governors’ Forum Chairman Abdulrahman AbdulRazaq cautioned that any amendments to the Act must protect state regulatory powers to prevent investor uncertainty.