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Stop Depending On FG For Electricity – Shettima Tells States

Key Takeaways

  • Vice President Kashim Shettima urged states to stop relying solely on the Federal Government for electricity solutions and establish functional power markets to attract private investors.
  • Shettima said the Electricity Act 2023 allows states to regulate their electricity markets, but urged them to establish regulatory bodies and conditions that attract investment.
  • NERC’s Deputy General Manager and Head of Compliance, Hauwa Yakubu, said the commission had transferred regulatory responsibilities to 17 states, with Akwa Ibom the latest.

Vice President Kashim Shettima has urged state governments to stop relying solely on the Federal Government to solve Nigeria’s electricity problems and instead establish their own functional power markets to attract private investors.

He said Nigeria’s ambition to build a strong industrial economy would remain difficult to achieve without reliable electricity for businesses, homes, hospitals and schools.

Naija News reports that Shettima made the call on Wednesday while declaring open a national stakeholders’ workshop on the Electricity Act 2023 at the Presidential Villa in Abuja.

The Vice President was represented at the event by the Deputy Chief of Staff to the President, Senator Ibrahim Hassan Hadejia.

The workshop brought together government agencies, electricity regulators and other stakeholders to review the implementation of the law and discuss ways to improve power supply across the country.

Shettima said the Electricity Act 2023 had given states an opportunity to regulate electricity markets within their jurisdictions and develop power solutions based on their resources and economic needs.

“Our states must shed the habit of waiting for Abuja to provide every answer,” he said.

He stressed that electricity supply should be treated as a shared responsibility between the Federal Government, state governments and private investors.

The Vice President pointed to the energy resources available in different parts of the country, saying states should take advantage of them to improve electricity supply and support economic growth.

He cited the solar energy potential of Sokoto, Borno and Katsina states, the gas resources in Delta, Rivers and Bayelsa, and the hydropower opportunities in Niger and Kebbi states.

According to him, turning these resources into viable electricity projects would help boost agriculture, manufacturing, healthcare and education.

However, Shettima warned that passing the law alone would not solve the country’s power problems, adding that states needed to establish the right institutions and create an environment that would attract investment.

He urged states that had yet to establish their electricity regulatory bodies to begin the process without further delay.

Shettima also proposed a voluntary National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the Nigeria Governors’ Forum and state electricity regulators.

He said the framework would allow states to learn from one another and assess their progress in developing electricity markets, attracting investments, protecting consumers and expanding access to power.

Earlier, the Permanent Secretary of the Ministry of Power, Mahmuda Mamman, said the success of the Electricity Act depended on states establishing credible regulatory institutions and electricity markets that could operate commercially.

On his part, the Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, said the forum was working to improve cooperation between federal and state institutions on electricity reforms.

Shittu also disclosed that efforts were underway to develop a standard tariff framework that would protect electricity consumers while encouraging private investment in the sector.

Meanwhile, NERC’s Deputy General Manager and Head of Compliance, Hauwa Yakubu, disclosed that the commission had transferred regulatory responsibilities to 17 states.

She said Akwa Ibom was the latest state to receive the transfer, marking another step towards state-level electricity regulation under the Electricity Act 2023.

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