Shettima Tells States to Take Charge of Local Power Problems as Electricity Devolution Deepens
Vice President Kashim Shettima has urged state governments to take greater responsibility for electricity problems within their jurisdictions, arguing that the legal framework now gives them more room to build and regulate local power markets.
Speaking through Deputy Chief of Staff Ibrahim Hadejia at the National Stakeholders’ Workshop on the Electricity Act 2023 in Abuja, Shettima said states should stop waiting for the Federal Government to solve problems that can increasingly be addressed through state-level electricity reforms.
The intervention reflects a major shift in Nigeria’s power-sector structure.
Under the Electricity Act 2023, states can establish and regulate intrastate electricity markets after completing the required legal and regulatory transition.
That does not mean states now control the entire electricity system.
The national grid, interstate electricity activities, transmission and system operation remain under federal regulation.
Shettima pushes states to build functioning markets
Shettima’s argument is that devolution creates both authority and responsibility.
States can no longer treat electricity reform as an issue for Abuja alone where they have the legal space to establish regulators, design local markets and attract investment.
He urged states to build competent institutions, strengthen regulation and make better use of local energy resources.
That could include embedded generation, renewable projects, mini-grids and other arrangements designed around local demand.
The broader objective is to reduce excessive dependence on a highly centralised system that has struggled for years with inadequate supply, transmission constraints and distribution problems.
What states can regulate
The Electricity Act 2023 allows states to regulate electricity activities conducted entirely within their territories once the required transition is completed.
That can include intrastate generation, distribution, supply, tariffs and consumer complaints.
NERC, however, continues to regulate interstate electricity activities, the national grid, transmission and system operation, alongside other functions that remain within federal jurisdiction.
It also retains responsibility where states have not completed the transition process.
The distinction matters because Nigeria’s electricity system remains interconnected.
State-level authority does not amount to complete independence from the national market.
More states are entering the new structure
The movement from federal to state regulation has accelerated.
NERC reported that 16 states had fully transitioned to state-level electricity regulation by July 2026.
At the October 21 workshop, an official said transfer orders had been issued to 17 states, including Akwa Ibom.
Those figures should not be treated as identical measures.
A transfer order marks an important regulatory step, but it does not necessarily mean every stage of transition has been fully completed.
And neither figure proves that electricity supply has improved.
Regulatory transfer is an institutional change.
Better service is an outcome that still has to be demonstrated.
The real test is service
Shettima also acknowledged that legislation alone will not fix Nigeria’s electricity problems.
That is the central accountability issue.
A state can pass an electricity law, establish a commission and receive regulatory authority without automatically delivering more reliable power.
The real test is whether reform produces new generation, stronger distribution networks, better metering, effective consumer protection and more dependable electricity.
Consumers will ultimately judge the reform by what happens when they switch on the light, not by how many regulatory agencies exist.
State markets could attract investment
One argument for electricity devolution is that states may be able to design markets around their own economic needs.
Industrial states may prioritise embedded generation and dedicated supply for manufacturing clusters.
Agricultural states could focus on electricity for irrigation, processing and storage.
Urban areas may prioritise distribution upgrades, metering and commercial reliability.
States with strong renewable-energy potential could also develop projects around solar, hydro and other local resources.
But legal authority alone will not attract capital.
Investors will also look at tariff certainty, regulatory credibility, payment systems, infrastructure conditions and whether contracts can be enforced.
Consumer protection will matter
State regulation also creates a new layer of responsibility for consumer protection.
Questions around billing, metering, service standards, complaints and tariff decisions will increasingly involve state regulators where transition has occurred.
That creates an opportunity for closer local oversight.
It also creates risk if regulators lack independence, technical capacity or political protection.
If weak regulation is simply transferred from Abuja to state capitals, consumers may see little difference.
The national grid still matters
Electricity devolution does not eliminate the importance of the national grid.
Many state markets will still depend on power generated elsewhere and transmitted through national infrastructure.
Transmission constraints, system collapses and generation shortages can therefore continue to affect consumers even in states with their own regulators.
The reform should therefore not be described as a complete transfer of electricity responsibility from the Federal Government to the states.
It is a redistribution of regulatory powers within an interconnected electricity system.
The accountability questions
The new structure raises several practical questions.
How many states have functioning regulators rather than only enabling laws or transfer orders?
How much new generation has state-market reform attracted?
Have consumers in transitioned states experienced better supply?
Are state regulators enforcing metering and service standards?
How are tariffs being set?
And are state electricity markets attracting private capital without weakening consumer protection?
Those questions will determine whether electricity devolution becomes a practical reform or simply another layer of administration.
What is verified
Vice President Kashim Shettima has urged states to take stronger responsibility for local electricity problems and make fuller use of powers available under the Electricity Act 2023.
States can regulate intrastate electricity markets after completing the required transition.
NERC retains authority over interstate electricity activities, the national grid, transmission and other federal functions.
NERC reported 16 states fully transitioned by July 2026, while an official at the October 21 workshop said transfer orders had been issued to 17 states, including Akwa Ibom.
Those regulatory changes do not, by themselves, prove that electricity supply has improved.
The real measure of the reform will be whether Nigerians receive more reliable power, stronger consumer protection and greater investment in electricity infrastructure.
