The Federal Government has called on Nigeria’s 36 states to assume full responsibility for electricity generation, transmission, and distribution, saying decentralisation remains the only lasting solution to the country’s persistent power crisis.
Minister of Power, Adebayo Adelabu, made this known on Tuesday during the Nigeria Energy Leadership Summit in Lagos. He explained that, despite years of reforms and investments, centralised power management has failed to deliver stable supply across the country.
According to him, President Bola Tinubu’s enactment of the Electricity Act 2023 was intentional and strategic, granting states regulatory autonomy and the legal authority to run their own electricity markets.
“A country as big as Nigeria cannot rely solely on Abuja to guarantee stable power supply. The Electricity Act decentralises control and allows states and private investors to participate fully across the value chain,”Adelabu stated.
He emphasized that the Federal Government alone cannot fund the sector due to competing national priorities such as healthcare, education, defence, and infrastructure. Private sector involvement, he said, is now crucial.
So far, 15 states have taken up regulatory authority, with Enugu State leading the way by fully operationalising its electricity regulatory commission. Lagos and Katsina states also indicated readiness to welcome investors into their regional power markets.
Adelabu urged state governors to hold power distribution companies accountable and collaborate closely with the Transmission Company of Nigeria to ensure improved power delivery.
He also disclosed that sector revenue has improved significantly, rising by 70 percent to ₦1.7 trillion in 2024, and is projected to surpass ₦2 trillion in 2025—an indicator of growing confidence shaped by regulatory reforms.
Experts say the states now have the opportunity to revolutionise Nigeria’s power landscape by developing independent grids, mini-grids, and renewable energy solutions, particularly in underserved rural communities.
If effectively implemented, the decentralised electricity system is expected to increase power accessibility, reduce reliance on the national grid, and stimulate local economic growth.
