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States accuse FG of undermining electricity reforms

State governments have accused the Federal Government of attempting to roll back the progress made in decentralising Nigeria’s power sector, warning that proposed amendments to the Electricity Act threaten their newly gained autonomy and could derail ongoing reforms.

This concern was openly expressed on Tuesday during a high-level meeting between the Minister of Power, Adebayo Adelabu, and state commissioners of energy.

Representatives of state governors insisted on full recognition of subnational regulatory authority, particularly over electricity tariffs, licensing, and distribution networks.

The meeting followed recent tensions sparked by the Enugu Electricity Regulatory Commission’s announcement slashing Band A electricity tariffs from N209/kWh to N160/kWh.

The Federal Government opposed the move, stating that any resulting market shortfall or subsidy would have to be funded by the states.

The Nigerian Electricity Regulatory Commission also reaffirmed that states lack jurisdiction over the national grid and power plants licensed under federal authority.

At the emergency meeting held at the Ministry of Power headquarters, Chairman of the Forum of Power Commissioners and Cross River State Commissioner for Power, Prince Eka Williams, criticised the ministry for backtracking on earlier commitments made with the Nigeria Governors’ Forum—particularly the delayed establishment of a joint federal-state coordination committee on electricity.

“That committee has yet to be constituted. If it had, we wouldn’t be here going back and forth,” Williams said. “We must work within a framework that respects our traditional roles and ensures that all stakeholders are heard.”

He expressed concern over the Federal Government’s approach to electricity sector reforms, cautioning against any attempt to recentralise powers already devolved to states under the Electricity Act, 2023.

He also highlighted lingering issues such as the lack of clarity on state equity in power assets, poor intergovernmental collaboration, and the slow progress in achieving regulatory harmonisation despite repeated calls from subnational authorities.

Speaking on behalf of the Forum of Power Commissioners, Williams said states remained committed to advancing Nigeria’s electricity market but were frequently excluded from critical policy decisions, despite their growing responsibilities under the decentralised framework.

“We cannot support any amendment that undermines the spirit or intent of the original Act,” Williams said. “Especially those that seek to recentralise powers that were constitutionally devolved. That would be a huge step backward.”

He noted that while states have made significant progress, as some have enacted their own electricity laws and established independent regulators, gaps still remain, particularly around transparency and cooperation.

“Despite repeated calls and engagements, there has been no meaningful progress from NERC or relevant agencies addressing the actualisation of state equity in Discos and NDPHC,” he added.

Supporting the call for greater state involvement, the Secretary of the Forum and Rivers State Commissioner for Energy, Omaley Omaley, clarified that the states were not out to cause regulatory confusion but were committed to building an inclusive electricity market—one that protects consumers, incentivises investors, and ensures broad-based value delivery.

“We are not playing to the gallery. Each state has engaged rigorously with the law and with stakeholders like the REA and NERC. Many of us have passed electricity laws, and about 17 states have REA-conveyed mini-grid permits.

“We come with legal expertise. About 18 states have passed their electricity laws, and some have established regulatory commissions. If Enugu has done something different, it’s a learning curve, not a declaration of war,” Omaley noted.

He added “What we want is synergy, not supremacy. Electricity is now a commodity, not just a utility. Our people expect value, and we must deliver it through dialogue and fairness.”

The Forum welcomed the minister’s pledge to hold regular engagements but stressed that such meetings must lead to concrete, time-bound actions rather than mere rhetoric.

It reaffirmed the states’ commitment to reforming their electricity markets within the framework of the law and warned that any attempt to recentralise regulatory authority would be firmly resisted adding that “power is no longer a utility but a commodity. And states must be allowed to protect their consumers and grow investor confidence.”

In his opening remarks, Minister of Power Adebayo Adelabu called for caution in the rollout of state-level electricity markets, emphasising the importance of coordination and synergy to safeguard the integrity of the national grid and prevent regulatory fragmentation.

“We fully respect the rights of states, but there must be coordination. The national electricity market is interconnected, and misaligned actions could disrupt power supply and investor confidence,” Adelabu said.

He added that the Federal Government, through the NERC, would maintain ongoing engagement with states to harmonise regulatory frameworks, particularly in areas where market fragmentation could pose technical or commercial risks.