The complexities of Nigeria’s ongoing electricity reforms, state governments have accuse the Federal Government of attempting to reverse recent progress in power sector decentralisation. The dispute centres on proposed amendments to the Electricity Act 2023, which some states believe could erode their newfound autonomy and threaten Nigeria’s broader electricity reform trajectory.

Key Points of Contention

At a high-level engagement held on Tuesday at the Ministry of Power, representatives of the state governors, especially the commissioners of energy, lambasted the Federal Government for what they perceive as interference in their regulatory space. They demanded full respect for their constitutional powers over electricity tariffs, licensing, and distribution systems—a right they feel is being ignored, particularly after recent decisions such as the Enugu Electricity Regulatory Commission’s move to reduce tariffs.

The Enugu state’s decision to lower the Band A tariff from N209 per kilowatt-hour to N160/kWh drew sharp criticism from the Federal Government and the Nigerian Electricity Regulatory Commission (NERC). While Enugu’s move was legally within their rights, the federal authorities insisted that states must bear responsibility for market shortfalls or subsidies resulting from such decisions. They also maintained that states lack jurisdiction over the national grid and federally licensed power stations.

Concerns Over Power Sector Reforms and Regulatory Autonomy

Prince Eka Williams, Chairman of the Forum of Power Commissioners, expressed concern that the Federal Government, particularly the Power Ministry, has been stalling agreements aimed at fostering collaboration. He emphasised that any move to centralize powers already devolved under the Electricity Act would be a backwards step.

“Our commitment remains in deepening Nigeria’s electricity market,” Williams stated. “But we oppose amendments that undermine our constitutional rights, especially those that seek to recentralize authority.”

Similarly, Omaley Omaley, the Rivers State Commissioner for Energy, highlighted the progress made by various states in enacting their own electricity laws and establishing independent regulatory bodies, pointing out that these efforts should be recognised and respected.

Federal Government Advocates for Coordination

Minister of Power, Adebayo Adelabu, urged caution in implementing state-level electricity market reforms. He acknowledged the rights of states but warned against uncoordinated actions that could destabilise the national grid or scare away investors. Adelabu stressed that Nigeria’s electricity system is interconnected; thus, misaligned actions could trigger conflicts and disrupt power supply across states.

“Strong partnerships and regulatory harmony are essential,” the minister said. “We aim for a modern, resilient, and inclusive electricity sector that powers Nigeria’s growth. Fragmentation and unilateralism endanger these objectives.”

He also highlighted recent milestones under President Bola Tinubu’s administration, including the signing of the Electricity Act 2023, which grants states constitutional authority over their electricity markets, and the launch of a comprehensive National Integrated Electricity Policy.

Enugu State’s Stand and the Path Ahead

Despite federal reservations, Enugu State officials defended their tariff decision, asserting that they followed legal procedures. Joe Aneke, Special Adviser to the Enugu Governor, warned against targeting individual states politically, emphasising the importance of cooperation over conflict.

Chinedum Ukabiala, Enugu’s Commissioner for Engineering and Safety, reaffirmed their commitment to dialogue but rejected intimidation. Meanwhile, NERC Vice Chairman Musiliu Oseni acknowledged the sector’s potential benefits from decentralisation but urged gradual transition and consensus-building, drawing parallels with models in India.

As Nigeria’s electricity market evolves, the assertiveness of states in managing their local systems signals a significant shift in the power landscape—one that tests the balance between federal authority and regional autonomy. Both sides agreed to continue dialogue and work toward forming a federal-state electricity coordination committee, aiming to resolve disputes and harmonise efforts.