The Minister of Power, Olasunkani Tegbe, has set up a 9-member inter-agency committee to address issues around decentralisation of the electricity market.
The committee was set up at a high-level workshop on legal, policy and regulatory harmonisation between federal and state institutions on the decentralisation of the Nigerian Electricity Supply Industry (NESI), held in Abuja.
The workshop was organised by the ministry in collaboration with the Nigerian Electricity Regulatory Commission (NERC).
NERC, in a statement after the meeting on Wednesday, said the minister is the chairman of the committee, with the objective of driving sustained engagement, resolving emerging implementation issues, and supporting the seamless operationalisation of the Electricity Act, 2023.
“The committee has a four-week duration to review issues raised at the meeting. The members will work with other stakeholders and share a resolution within the time frame,” the statement said.
The minister, in his address at the workshop, said Nigeria’s transition to a decentralised electricity market is one of the most significant reforms in the power sector in decades, noting that its success will depend not on institutional competition, but on collaboration, regulatory certainty, and our shared commitment to delivering better outcomes for Nigerians.
“Ladies and gentlemen, permit me to make one central point this morning. We must make the Nigerian Electricity Supply Industry succeed.”
Mr Tegbe said electricity remains the single most important enabler of economic growth, industrialisation, job creation, digital transformation and improved quality of life.
“Every sector of our economy depends upon it, manufacturing, agriculture, mining, financial services, telecommunications and information technology, to mention but a few.
“Indeed, every national aspiration under the Renewed Hope Agenda rests upon the availability of reliable electricity. The responsibility before us, therefore, extends beyond institutional mandates. It is a national obligation,” he said.
The minister said the decentralisation of the electricity market should not be viewed as fragmentation.
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“It should rather be understood as the intelligent distribution of responsibilities within one integrated national electricity ecosystem. I am encouraged by the constructive engagement of all stakeholders, including the decision to deepen consultations as we continue to strengthen the implementation framework.
“Together, we are laying the foundation for a modern, reliable, and investor-friendly electricity market that delivers improved service, attracts investment, and powers Nigeria’s economic growth,” he said.
Electricity market decentralisation is shifting power generation, regulation, and distribution from centralised national grids to smaller, state, or localised frameworks.
In June 2023, President Bola Tinubu signed the electricity bill, which authorises states, companies and individuals to generate, transmit and distribute electricity.
ThePreview Media reports that 16 states have officially taken control of their interstate electricity market under the Electricity Act 2023.
