Since President Bola Tinubu signed the Electricity Act in June 2023, seven Nigerian states have moved swiftly to regulate their own power sectors. Specifically, Lagos, Enugu, Edo, Kaduna, Ekiti, Ondo, and Oyo have enacted local electricity laws. Consequently, they now handle power generation, transmission, and distribution—breaking the federal government’s long-standing monopoly.
Here’s what’s unfolding:
- States pass local electricity laws
States created their own legal frameworks to manage intrastate power markets. Once notified, the Nigerian Electricity Regulatory Commission (NERC) transferred regulatory powers to these state bodies. - State regulators now active
Enugu recently launched its State Electricity Regulatory Commission (EERC) and began operations in October 2024. Similarly, Lagos and others are working on licensing mini-grids and embedded power providers. - Federal government steps in cautiously
However, the Power Minister halted further transfers, citing concerns around market maturity. He recommended a phased, pilot approach rather than immediate, nationwide rollout. - Opportunities—and challenges—emerge
Experts call this decentralization a huge step forward. Essentially, it invites private and renewable energy investments. Yet, stakeholders also warn that states must build capacity to manage tariffs, theft, and infrastructure maintenance.
✅ Why This Matters
- More targeted regulation – States can tailor solutions to local energy needs.
- Enhanced investment appeal – Smaller-scale projects may be more attractive to investors.
- Stronger accountability – State-level oversight may reduce inefficiencies and theft.
- Capacity gap alert – States need adequate staffing, technical expertise, and financial resources.
🔜 What to Watch
- Progress of pilot implementations in the current seven states.
- NERC’s plan to monitor and evaluate state-level performance.
- Whether additional states follow suit or the federal government resumes oversight transfers.
