Nigeria’s electricity landscape is undergoing a major transformation as seven states—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi—officially assume full regulatory control over their electricity markets, in line with the Electricity Act 2023 signed into law by President Bola Tinubu. This landmark reform marks a shift from the long-standing, centrally managed electricity sector, giving sub-national governments the authority to independently generate, transmit, distribute, and regulate electricity within their jurisdictions. The Nigerian Electricity Regulatory Commission (NERC), previously the sole regulator, will now serve a diminished role, providing only oversight to states that haven’t transitioned. According to NERC, at least 11 states have begun the decentralisation process, with Lagos, Ogun, Niger, and Plateau expected to finalise their transitions between June and September. Anambra State has also passed its electricity law and is setting up its regulatory agency. While many experts and stakeholders have welcomed the move as a much-needed push towards true federalism, energy market competitiveness, and improved service delivery, concerns remain about state readiness. Industry insiders warn of capacity gaps, regulatory inexperience, and a lack of technical expertise that could hamper the success of the new state-managed electricity markets. “There’s a serious manpower issue,” a senior NERC official told The PUNCH. “States may not yet grasp the full implications of managing their own electricity markets, especially when it comes to technical operations like tariff setting or enforcement.” States are expected to create new electricity regulatory commissions to license operators and monitor distribution companies. In Enugu, the state has already begun enforcement, even sanctioning a local distribution firm, MainPower Electricity Distribution Ltd, for overbilling. Lagos has also made strides by issuing its first regulatory order under the Lagos State Electricity Regulatory Commission (LASERC), asserting control over all intrastate electricity activities. Consumer advocates have raised red flags about the possible creation of “regulatory vacuums” in states that have taken over without setting up solid frameworks. Others fear the politicisation of power pricing, subsidy management, and consumer protection. Still, proponents like PowerUp Nigeria’s Adetayo Adegbemle argue the reform is a necessary leap forward. “Decentralisation will open the door for private investment and tailored solutions to local electricity needs,” he said. “But states must act quickly to build institutions, protect consumers, and avoid regulatory confusion.” The development is being hailed as a step toward realising the economic potential of the country’s power sector, long plagued by inefficiencies and poor service delivery. Experts warn, however, that success will hinge on collaboration between state and federal actors, as well as a shared commitment to capacity building, transparency, and innovation.
