State governments have accused the Federal Government of attempting to reverse the gains of power sector decentralisation, warning that proposed amendments to the Electricity Act could erode their newly granted autonomy and undermine Nigeria’s electricity reform trajectory.
The tension was laid bare on Tuesday at a high-level engagement between the Minister of Power, Adebayo Adelabu, and state commissioners of energy, where governors’ representatives demanded full respect for subnational regulatory powers, especially over electricity tariffs, licensing and distribution systems.
The discussion was against the backdrop of rising tension over the announcement by the Enugu Electricity Regulatory Commission to reduce the cost of the Band A tariff from N209 per kilowatt-hour to N160/kWh.
The Federal Government rejected the decision, insisting that state governments would be responsible for covering any market shortfall or subsidy. The Nigerian Electricity Regulatory Commission also maintained that states lack jurisdiction over the national grid and power stations established under federal laws or operating under NERC-issued licences.
However, at the emergency meeting on Tuesday held at the power ministry headquarters, Chairman of the Forum of Power Commissioners and Cross River State Commissioner for Power, Prince Eka Williams, criticised the ministry for stalling earlier agreements reached with the Nigeria Governors’ Forum, including the formation of a joint federal-state coordination committee on electricity.
“That committee has yet to be constituted. If it had, we wouldn’t be here going back and forth,” Williams said. “We must work within a framework that respects our traditional roles and ensures that all stakeholders are heard.”
He raised concerns on the Federal Government’s handling of electricity sector reforms, warning against any move to centralise powers already devolved to the subnational level under the Electricity Act, 2023. He also talked about the lack of clarity on state equity in power assets, insufficient collaboration, and the slow pace of regulatory harmonisation despite repeated calls.
Speaking on behalf of the Forum of Power Commissioners, Williams said the states had remained committed to deepening Nigeria’s electricity market but were often sidelined in key policy decisions.
“We cannot support any amendment that undermines the spirit or intent of the original Act,” Williams said. “Especially those that seek to recentralise powers that were constitutionally devolved. That would be a huge step backward.”
He noted that while states have made significant progress, as some have enacted their own electricity laws and established independent regulators, gaps still remain, particularly around transparency and cooperation. Despite repeated calls and engagements, there has been no meaningful progress from NERC or relevant agencies addressing the actualisation of state equity in Discos and NDPHC,” he added.
Backing him, the Secretary of the forum and Rivers State Commissioner for Energy, Omaley Omaley, said the states were not interested in creating regulatory chaos but in building an inclusive market that protects consumers, encourages investors, and delivers value.
“We are not playing to the gallery. Each state has engaged rigorously with the law and with stakeholders like the REA and NERC. Many of us have passed electricity laws, and about 17 states have REA-conveyed mini-grid permits.
“We come with legal expertise. About 18 states have passed their electricity laws, and some have established regulatory commissions. If Enugu has done something different, it’s a learning curve, not a declaration of war,” Omaley noted.
“What we want is synergy, not supremacy. Electricity is now a commodity, not just a utility. Our people expect value, and we must deliver it through dialogue and fairness,” he added.
He also warned that conflicting tariffs, fragmented subsidies, and a lack of market coordination could erode public trust and investor confidence. “If a governor hears that tariffs went down in a neighbouring state and calls us to explain, we should be able to point to an agreed national framework, not confusion. That’s why regular dialogue like this is critical.”
The forum welcomed the minister’s commitment to periodic engagements, but urged that these meetings go beyond speeches to concrete, time-bound actions and reaffirmed states’ commitment to reforming their electricity markets within the law.
He warned that any attempt to centralise regulatory authority again would be resisted, stating that “power is no longer a utility but a commodity. And states must be allowed to protect their consumers and grow investor confidence.”
In his opening remarks, the Minister of Power, Adebayo Adelabu, urged caution in the implementation of state-level electricity markets, stressing the need for synergy to protect the integrity of the national grid and avoid regulatory chaos.
“We fully respect the rights of states, but there must be coordination. The national electricity market is interconnected, and misaligned actions could disrupt power supply and investor confidence,” Adelabu said.
He added that the Federal Government, through the NERC, would continue to engage states to align on rules, especially where market fragmentation poses technical and commercial risks.
He cited major milestones under President Bola Tinubu’s administration, including the signing of the Electricity Act 2023, which grants states the constitutional authority to manage their electricity markets; the launch of the first National Integrated Electricity Policy in over two decades; and an influx of local and foreign capital into grid infrastructure.
“These achievements are only a foundation for greater progress,” Adelabu said. “We recognise that real, lasting impact can only be achieved through strong partnerships with stakeholders, especially the State Governments.”
While acknowledging the rights of states, the minister cautioned against uncoordinated market development that could undermine grid stability or investor confidence.
“The national electricity market is an interconnected system. Any misalignment or unilateral action can trigger regulatory or technical conflicts and jeopardise service delivery to neighbouring states,” he warned.
He concluded by stressing the importance of regulatory harmony, warning that fragmentation could stall the sector’s progress.
“A fragmented regulatory environment creates uncertainty. We must harmonise our standards, protect consumers, attract investment, and move with one vision: a modern, resilient, and inclusive electricity sector that powers Nigeria’s growth.”
But in what appeared to be a direct rebuttal, Enugu State officials strongly defended their recent tariff announcement, which has been the subject of sharp criticism.
The Special Adviser to the Enugu State Governor, Joe Aneke, said the state followed due process and published all regulatory materials online for public scrutiny.
“Our law has been on the website for over a year. Nobody from NEC or the ministry wrote to us to challenge it. The claim that we didn’t consult or that our tariff process was flawed is false,” Aneke said.
He warned that targeting Enugu personally or politically could derail the broader goal of creating a functional decentralised power market. “If you’re calling a meeting and naming individuals, you’re not building harmony, you’re burning bridges,” he added.
Also speaking, Enugu Commissioner for Engineering and Safety, Chinedum Ukabiala, a former NERC official, said the state acted within its rights and was open to dialogue, but would not accept intimidation.
“I worked in NERC for over 15 years. I would never drag the Commission down. But certain things we observed in the past as staff informed our approach today,” Ukabiala stated.
NERC’s Vice Chairman, Musiliu Oseni, however, struck a conciliatory tone, saying the commission was open to more collaboration but cautioned states against unilateral actions that could destabilise the market.
“Tariff methodology is delicate. If the assumptions are wrong, it creates market shortfalls, and the Federal Government ends up bearing the financial burden,” he said.
Oseni acknowledged that decentralisation had potential benefits, such as more localised regulation and customer proximity, but insisted that the transition must be delicately managed to avoid disruption. (Punch)
