By Okorie Onu Okorie
The Minister of Power Mr Adebayo Adelabu has said that the signing of the Electricity Act 2023 has unlocked the opportunity for States to develop their own electricity markets; the development of the first National Integrated Electricity Policy in over two decades; and the attraction of significant local and foreign investments into generation, transmission, and distribution infrastructure. He stated this yesterday in Abuja during a meeting with state commissioners of Power.
These achievements are only the foundation for greater progress, and we recognise that real, lasting impact can only be achieved through strong partnerships with all stakeholders including you the States Government. We therefore look forward to working more closely with you to accelerate electrification, deepen market development, and expand access to affordable, reliable power across all communities.
As you embark on the development and evolution of your respective State electricity markets, I wish to emphasise the importance of improved coordination between the Federal and State Governments.
While we fully respect the constitutional rights of States to determine how their electricity markets should evolve, it is equally critical to involve the Federal Government, particularly as the custodian of the national grid and wholesale market to ensure that market developments at the State level do not inadvertently disrupt the stability and efficiency of the entire sector.
The national electricity market is an interconnected system that depends on coordinated generation, transmission, and distribution operations across State borders. Any misalignment or uncoordinated action at the subnational level can create technical, commercial, or regulatory conflicts that weaken grid stability, disrupt power supply to neighbouring States, and undermine investor confidence.
By working together and ensuring alignment, we can safeguard the integrity of the national grid, optimise resources, and provide reliable and affordable electricity to all Nigerians, regardless of where they live.
” Commissioners, I also urge you to prioritise the electrification of unserved and underserved communities within your States. Expanding access for those who need it most remains a central pillar of our national electrification agenda. The Rural Electrification Agency (REA) stands ready to provide you with the technical and financial support needed to deliver impactful projects and innovative solutions like Mini-grids and standalone systems that extend electricity access to our most remote and energy-poor areas.”
“In closing let me reiterate the importance and the need for strong regulatory alignment and synergy across the entire electricity value chain. Our common goal is to ensure that every Nigerian, regardless of location, has access to reliable electricity that powers homes, businesses, industries, and drives our collective economic growth.”
To achieve this, regulators at the Federal and State levels must work hand in hand to harmonise standards, coordinate frameworks, and provide investors with clarity and confidence in the stability of the market.” He explained.
Adelabu also said that a fragmented regulatory environment, where different rules and standards apply without alignment, creates uncertainty for investors and operators alike. It can lead to disputes, inefficiencies, duplicated efforts, and conflicting obligations that ultimately slow down sector development. By maintaining strong regulatory cooperation, we can create a level playing field, attract more private sector participation, protect consumers, and ensure that everyone is working towards the same vision of a modern, efficient, and inclusive electricity sector that supports Nigeria’s economic ambitions.
