A state can take control of its electricity market without giving households more reliable power or businesses a stronger basis for growth. We believe this is the central test facing Nigeria’s electricity decentralisation: whether the transfer of regulatory authority will produce measurable improvements in electricity supply, attract private investment and protect consumers, or simply create another layer of administration.
Under the Electricity Act 2023, states have an opportunity to shape electricity markets around their economic needs and infrastructure priorities. Seventeen states have received regulatory responsibility, with Akwa Ibom becoming the latest. We recognise this as significant progress, but we caution against treating regulatory transfers as proof of reform success. The real test begins when state institutions must enforce market rules, attract investment and deliver better outcomes for electricity consumers.
We believe states must demonstrate that they can build capable institutions, enforce market rules and create conditions that encourage long-term investment. Without these foundations, decentralisation risks transferring responsibilities without resolving the weaknesses that have constrained electricity supply for years.
The Federal Ministry of Power’s Permanent Secretary, Mahmuda Mamman, has emphasised the importance of strong state institutions and commercially viable electricity markets. We agree. Investors need clear regulations, predictable commercial arrangements and confidence that contractual obligations will be respected. Consumers, in turn, need reliable service, transparent billing and effective channels for resolving complaints.
We also recognise the importance of the Nigeria Governors’ Forum (NGF)’s work on a standard tariff framework intended to protect consumers while encouraging investment. We urge state governments to ensure that tariff arrangements reflect the need to sustain electricity businesses without placing unreasonable burdens on households and enterprises. Consumer protection and commercial viability should reinforce each other, rather than be treated as competing objectives.
We see the proposed National Electricity Reform Peer Review and Implementation Framework as a useful mechanism for strengthening accountability. Its value, however, will depend on whether it produces credible assessments, identifies implementation gaps and encourages states to act on its findings. We urge participating authorities to establish measurable benchmarks for electricity availability, investment mobilisation, regulatory performance, consumer complaints and service quality.
States must also communicate their plans clearly to residents and businesses. Consumers need to understand who regulates their electricity market, how complaints are handled, what protections are available and how tariff decisions are made. We believe public communication should be treated as part of regulatory responsibility, not an afterthought.
We further urge federal and state authorities to coordinate where electricity markets, infrastructure and commercial arrangements cross jurisdictional boundaries. Decentralisation should not create regulatory uncertainty or unnecessary barriers for investors seeking to operate across multiple states.
Ultimately, we believe the success of electricity reform must be measured by outcomes rather than administrative milestones. The number of states that have assumed regulatory responsibility is useful, but it cannot substitute for evidence of improved supply, stronger investment, fairer market practices and better service delivery.
We call on state governments to move beyond establishing regulatory structures and demonstrate what those structures can achieve. We also urge the federal government and the NGF to support implementation through consistent standards, transparent performance reviews and practical cooperation.
Nigeria’s electricity reform will gain credibility when households experience more dependable power, businesses can plan around a more reliable supply and investors find markets governed by clear and enforceable rules. We believe that is the standard by which state electricity markets should ultimately be judged.
