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State governments have accused the Federal Government of attempting to reverse the gains of power sector decentralisation, warning that proposed amendments to the Electricity Act could erode their newly granted autonomy and undermine Nigeria’s electricity reform trajectory.

The tension was laid bare on Tuesday at a high-level engagement between the Minister of Power, Adebayo Adelabu, and state commissioners of energy, where governors’ representatives demanded full respect for subnational regulatory powers, especially over electricity tariffs, licensing and distribution systems.

The discussion was against the backdrop of rising tension over the announcement by the Enugu Electricity Regulatory Commission to reduce the cost of the Band A tariff from N209 per kilowatt-hour to N160/kWh.

The Federal Government rejected the decision, insisting that state governments would be responsible for covering any market shortfall or subsidy. The Nigerian Electricity Regulatory Commission also maintained that states lack jurisdiction over the national grid and power stations established under federal laws or operating under NERC-issued licences.

However, at the emergency meeting on Tuesday held at the power ministry headquarters, Chairman of the Forum of Power Commissioners and Cross River State Commissioner for Power, Prince Eka Williams, criticised the ministry for stalling earlier agreements reached with the Nigeria Governors’ Forum, including the formation of a joint federal-state coordination committee on electricity.

“That committee has yet to be constituted. If it had, we wouldn’t be here going back and forth,” Williams said. “We must work within a framework that respects our traditional roles and ensures that all stakeholders are heard.”

He raised concerns on the Federal Government’s handling of electricity sector reforms, warning against any move to centralise powers already devolved to the subnational level under the Electricity Act, 2023. He also talked about the lack of clarity on state equity in power assets, insufficient collaboration, and the slow pace of regulatory harmonisation despite repeated calls.

Speaking on behalf of the Forum of Power Commissioners, Williams said the states had remained committed to deepening Nigeria’s electricity market but were often sidelined in key policy decisions.

“We cannot support any amendment that undermines the spirit or intent of the original Act,” Williams said. “Especially those that seek to recentralise powers that were constitutionally devolved. That would be a huge step backward.”

He noted that while states have made significant progress, as some have enacted their own electricity laws and established independent regulators, gaps still remain, particularly around transparency and cooperation. Despite repeated calls and engagements, there has been no meaningful progress from NERC or relevant agencies addressing the actualisation of state equity in Discos and NDPHC,” he added.

Backing him, the Secretary of the forum and Rivers State Commissioner for Energy, Omaley Omaley, said the states were not interested in creating regulatory chaos but in building an inclusive market that protects consumers, encourages investors, and delivers value.

“We are not playing to the gallery. Each state has engaged rigorously with the law and with stakeholders like the REA and NERC. Many of us have passed electricity laws, and about 17 states have REA-conveyed mini-grid permits.

“We come with legal expertise. About 18 states have passed their electricity laws, and some have established regulatory commissions. If Enugu has done something different, it’s a learning curve, not a declaration of war,” Omaley noted.

“What we want is synergy, not supremacy. Electricity is now a commodity, not just a utility. Our people expect value, and we must deliver it through dialogue and fairness,” he added.

He also warned that conflicting tariffs, fragmented subsidies, and a lack of market coordination could erode public trust and investor confidence. “If a governor hears that tariffs went down in a neighbouring state and calls us to explain, we should be able to point to an agreed national framework, not confusion. That’s why regular dialogue like this is critical.”

The forum welcomed the minister’s commitment to periodic engagements, but urged that these meetings go beyond speeches to concrete, time-bound actions and reaffirmed states’ commitment to reforming their electricity markets within the law.

He warned that any attempt to centralise regulatory authority again would be resisted, stating that “power is no longer a utility but a commodity. And states must be allowed to protect their consumers and grow investor confidence.”

In his opening remarks, the Minister of Power, Adebayo Adelabu, urged caution in the implementation of state-level electricity markets, stressing the need for synergy to protect the integrity of the national grid and avoid regulatory chaos.

“We fully respect the rights of states, but there must be coordination. The national electricity market is interconnected, and misaligned actions could disrupt power supply and investor confidence,” Adelabu said.

He added that the Federal Government, through the NERC, would continue to engage states to align on rules, especially where market fragmentation poses technical and commercial risks.

He cited major milestones under President Bola Tinubu’s administration, including the signing of the Electricity Act 2023, which grants states the constitutional authority to manage their electricity markets; the launch of the first National Integrated Electricity Policy in over two decades; and an influx of local and foreign capital into grid infrastructure.

Ikaeniyan0:
I don't understand why the Tinubu administration is trying to centralize the power sector again. I'm glad the states are against the move

Kingdavid579:
Lol, which kind wahala be dis, shey federal government has decentralized it on paper.

kelechiodo:
The decentralisation must continue. Infact, almost all fedeeral agencies and power except military arem should be decentralised. This over cenytralisation should be totally overhauled

udemzyudex:
I have said it before,there is a deliberate attempt to continue keeping us in darkness,for how many years now we are still on 5000mega watts,how naa?
For a population of over 250m people.

Cromagnon:
centralize how
Freedom of speech sha

Forty forty forty forty forty forty forty forty forty forty forty

udemzyudex:
I have said it before,there is a deliberate attempt to continue keeping us in darkness,for how many years now we are still on 5000mega watts,how naa?
For a population of over 250m people.

Ikaeniyan0:
I don't understand why the Tinubu administration is trying to centralize the power sector again. I'm glad the states are against the move

Kudos6453:
The won't be possible for Fg to be generating power and then allow states to be distributing and licensing to make income to their cover. If the states have the capacity they take on the generating capacity then

COMPAQ:
Deliberate by who and for what purpose? Nigerians love conspiracy theories sha. Every problem is caused by someone else. And please don't tell me that nonesense of generator importers!!

Cromagnon:
nobody is keeping you in darkness
Do you not have freedom to buy Gen and solar

Ikaeniyan0:
I don't understand why the Tinubu administration is trying to centralize the power sector again. I'm glad the states are against the move

ejieddy:
I think it's more like people who still want to have relevance because they know that this decentralization will make them irrelevant, majorly in the power ministry. They are fighting for 'power' (no pun intended)

Ikaeniyan0:
I don't understand why the Tinubu administration is trying to centralize the power sector again. I'm glad the states are against the move.

The bill will never go through

COMPAQ:
If ENUGU state wants electricity to be N160 in its regulatory domain, it either generates its own electricity and sells it at whatever price it wants or buys it from the grid and subsidises it. There is no other way. As of now, almost all the power plants in the country belong to the Federal Government, as well as the Transmission grid.

And state government shad better not go down that route of subsidy. It has not worked in any sector in Nigeria. All it breeds is corruption and inefficiency. The tariff should be cost reflective. Let the business thrive and grow by itself.

udemzyudex:
You're the one bringing up the generator nonesense cos I didn't mention that in my post, why don't you use your brain and think why a country with over 250m population can't boast of 10,000 mega watts?

Do you want to tell me you don't know the importance of electricity in economy development?
Why is it so hard for every government to improve on it starting from Obasanjo? They'll come and leave it at 6000 and some people will come out and say the problem is distribution and not generation yet for how many years they still can't solve any of it.

Use your brain for once and think deeply,this is not conspiracy theory, I wonder why people like you who fail to think deeply will come out to shout conspiracy when you're the one actually doing that.

Neoteny:
States cannot set tariffs for electricity they neither generated nor transmitted. If they want to reduce tariffs, they should subsidize the portion they discounted, otherwise they should generate and wheel the electricity they want to reduce prices for.

It's that simple.

bigboa:
And that is the crux of the argument: If the states have exclusive control of their power systems, they have the right to determine the pricing in conjunction with the GenCos. Any GenCo that doesn't like it can bounce. It is not the FGs place to police the states... They should go face the other macroeconomic issues plaguing the country.

bigboa:
And that is the crux of the argument: If the states have exclusive control of their power systems, they have the right to determine the pricing in conjunction with the GenCos. Any GenCo that doesn't like it can bounce. It is not the FGs place to police the states... They should go face the other macroeconomic issues plaguing the country.