By Majeed Salaam
Nigeria’s electricity reform programme is entering a more localised phase, as the federal government moves to integrate local governments into the country’s evolving power sector.
The initiative reflects a shift from high-level restructuring toward grassroots participation, aimed at improving electricity access and addressing persistent distribution gaps.
Speaking recently in Abuja at the inauguration of the board of the Nigeria Electricity Management Services Agency (NEMSA), Honourable Minister of Power, Mr. Adebayo Adelabu, stated that decentralisation efforts would increasingly accommodate local actors. The proposal builds on recent reforms that have already empowered state governments to participate in electricity generation, transmission, and distribution.
The extension to local governments is designed to address inefficiencies in last-mile delivery, particularly in rural and underserved communities. While national and state-level reforms have created a more flexible regulatory environment, access to electricity remains uneven, suggesting that structural changes have yet to fully translate into service delivery.
Adelabu’s approach positions local governments as supportive participants, with responsibilities likely to focus on rural electrification, mini-grid deployment, and local distribution networks. These areas require proximity to end-users and a clearer understanding of local demand patterns, making them suitable entry points for grassroots involvement.
The policy direction aligns with the broader reform agenda of Bola Ahmed Tinubu, under which the Electricity Act 2023 decentralised the sector and enabled subnational entities to establish regulatory frameworks. So far, at least 17 states have begun developing local electricity markets, signalling a gradual transition toward a more distributed system.
However, extending participation to local governments introduces new challenges. Compared to states, local authorities have more limited financial and institutional capacity, raising questions about execution and sustainability. Their effectiveness will depend on clearly defined roles, regulatory coordination, and access to financing, particularly through partnerships with private investors.
Alongside governance reforms, the government is also targeting infrastructure gaps. Adelabu disclosed plans to procure at least 10 million electricity meters over the next five years to address a deficit estimated at over seven million units. Closing this gap is critical to improving billing accuracy, revenue collection, and consumer trust in the system.
The minister also emphasised the need to reduce reliance on imported power equipment, noting that a significant proportion of sector inputs are sourced from abroad. This dependence increases costs and exposes the industry to foreign exchange pressures. In response, the government is prioritising domestic production of meters, batteries, and other components to build local capacity and retain economic value.
Renewable energy development forms another component of the reform agenda. Nigeria’s lithium deposits present opportunities for local battery production, while ongoing solar panel manufacturing indicates early progress in clean energy adoption. These initiatives suggest an effort to align power sector reforms with broader industrial and energy transition goals.
Despite these advances, the success of the reform strategy will depend on implementation. Expanding participation to local governments increases the complexity of coordination across multiple tiers of governance. It also raises the need for a coherent framework that balances decentralisation with regulatory consistency.
Nigeria’s power sector is therefore moving toward a hybrid model, combining centralised grid infrastructure with decentralised, locally managed systems. If effectively executed, this approach could improve access, enhance system resilience, and reduce pressure on the national grid. The challenge remains ensuring that policy ambition translates into measurable improvements in electricity supply for end-users.
