Mkpoikana Udoma
Port Harcourt
Lagos — Nigeria’s power sector is undergoing a historic decentralization as 11 states have now assumed full regulatory control of their electricity markets, following the Electricity Act (Amendment) signed by President Bola Ahmed Tinubu in December 2024.
According to the Minister of Power, Chief Adebayo Adelabu, the shift is a direct outcome of the Electricity Act amendment, which empowers subnational governments to license electricity service providers, approve tariffs, and set service standards, previously exclusive to the Nigerian Electricity Regulatory Commission, NERC.
Adelabu disclosed these recently, during the 2025 Ministerial Press Briefing hosted by the Ministry of Information and National Orientation in Abuja.
Hello said, “We are witnessing a silent revolution in the power sector. For the first time in our history, state governments can regulate electricity generation, transmission, and distribution within their domains.
“This is true federalism at work. Power is now closer to the people. States now have the legal and institutional frameworks to determine their energy destiny.”
Adelabu explained that the reform is already stimulating healthy competition among states, encouraging innovation, and attracting independent power producers, IPPs, who previously avoided Nigeria due to central regulatory bottlenecks.
“We’re seeing states like Lagos, Edo, and Kaduna already moving quickly to establish electricity markets tailored to their local needs.
“This removes red tape and makes project development faster. Investors are more confident when they can negotiate directly with state regulators who understand the ground realities.”
The Minister disclosed that more states are undergoing capacity-building to follow suit, with NERC and the Federal Ministry of Power providing technical guidance during the transition.
Despite the devolution, Adelabu assured that the Federal Government will continue to provide backbone infrastructure, fiscal support, and regulatory oversight where necessary, especially in inter-state power trade and grid coordination.
“The grid remains national, and we will continue to play a role in managing bulk transmission and ensuring national energy security.
“But within their borders, states now have real power, literally and legally, to solve their electricity challenges and deliver reliable service to their people.
“Electricity cannot be one-size-fits-all. What works in Lagos may not work in Zamfara. With this reform, we now have the flexibility to tailor power solutions to fit local needs.”
The Minister called on states yet to begin the regulatory transition to act swiftly and not miss the opportunity.
“The law is in place, the power is in your hands. If you want to develop your electricity market, you now have the tools. This is how we will truly achieve energy access for all,” he concluded.
