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Daniel Adaji
The Federal Government has called on state governments to align their electricity market development efforts with national policies to ensure grid stability, investor confidence, and reliable power supply across Nigeria.
Speaking on Tuesday at a meeting with State Commissioners for Energy in Abuja, the Minister of Power, Chief Adebayo Adelabu underscored the importance of coordination between the Federal and State Governments as states begin implementing provisions of the Electricity Act 2023.
“While we fully respect the constitutional rights of States to determine how their electricity markets should evolve, it is equally critical to involve the Federal Government, particularly as the custodian of the national grid and wholesale market to ensure that market developments at the State level do not inadvertently disrupt the stability and efficiency of the entire sector,” the Minister said.
The Electricity Act 2023, signed into law by President Bola Tinubu, allows states to develop and manage their electricity markets independently. However, the Minister cautioned that a fragmented regulatory approach could threaten grid stability and undermine gains made in the power sector.
“The national electricity market is an interconnected system that depends on coordinated generation, transmission, and distribution operations across State borders. Any misalignment or uncoordinated action at the subnational level can create technical, commercial, or regulatory conflicts that weaken grid stability, disrupt power supply to neighbouring States, and undermine investor confidence,” he said.
Adelabu noted that the Federal Government had taken major strides in improving the sector, including the formulation of the first National Integrated Electricity Policy in over two decades and attracting local and foreign investments in infrastructure.
“These achievements are only the foundation for greater progress, and we recognise that real, lasting impact can only be achieved through strong partnerships with all stakeholders including you the States Government,” he said.
He urged State Commissioners to prioritise electrifying unserved and underserved communities.
“Expanding access for those who need it most remains a central pillar of our national electrification agenda. The Rural Electrification Agency (REA) stands ready to provide you with the technical and financial support needed to deliver impactful projects and innovative solutions like Mini-grids and standalone systems.”
The minister called for a harmonised regulatory environment across federal and state levels to boost investor confidence and reduce inefficiencies.
“By maintaining strong regulatory cooperation, we can create a level playing field, attract more private sector participation, protect consumers, and ensure that everyone is working towards the same vision of a modern, efficient, and inclusive electricity sector that supports Nigeria’s economic ambitions,” he stated.