Shettima Urges States to Leverage Electricity Act 2023 to Attract Investment, Improve Power Supply
Vice President Kashim Shettima has urged state governments to maximise the opportunities provided by the Electricity Act 2023 by establishing functional electricity markets, attracting private investment and developing solutions to their local power challenges.
He said Nigeria’s ambition to build a competitive industrial economy would remain constrained unless ongoing electricity reforms translated into reliable power supply for businesses, households and public institutions across the country.
The Vice President made the call on Wednesday while declaring open the National Stakeholders’ Workshop on the Electricity Act 2023 at the State House Banquet Hall, Presidential Villa, Abuja.
The workshop, themed “Unlocking the Opportunities of the Electricity Act 2023 for Sustainable Energy Development and Economic Growth in Nigeria,” brought together federal and state institutions, regulators and other stakeholders to review the implementation of the legislation.
Represented by the Deputy Chief of Staff to the President, Senator Ibrahim Hassan Hadejia, Shettima said the Act had created opportunities for decentralising electricity governance and enabling states to develop power markets suited to their economic needs and available resources.
“The Act empowers States to develop and regulate intrastate electricity markets within the applicable constitutional and statutory framework. The size, diversity and endowments of this nation demand this decentralisation,” he said.
He stressed that electricity supply must become a shared responsibility across the federation, urging state governments to move away from depending solely on the Federal Government to address their power challenges.
Shettima identified Nigeria’s diverse energy resources as a major opportunity for expanding electricity access, citing solar energy potential in Sokoto, Borno and Katsina states, gas resources in Delta, Rivers and Bayelsa states, and hydropower opportunities in Niger and Kebbi states.
He urged state governments to convert these natural advantages into viable investments capable of supporting agriculture, manufacturing, healthcare and education.
However, the Vice President cautioned that the passage of legislation alone would not guarantee improved electricity supply, calling on states yet to establish regulatory institutions to begin the necessary legislative and institutional preparations.
“Legislation cannot implement itself. States yet to act must begin their legislative and institutional preparations promptly. They need to establish functional electricity regulatory bodies with technical competence and capacity,” he stated.
To promote effective implementation, Shettima proposed a National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the Nigeria Governors’ Forum (NGF) and state electricity regulators.
He explained that the proposed voluntary framework would enable states to share experiences, strengthen regulatory institutions and assess progress in electricity market development, investment readiness, consumer protection and access to power.
“No State needs to purchase with failure the knowledge another State has already acquired,” he said.
According to him, annual voluntary reviews would help identify implementation challenges, facilitate technical assistance and promote practical solutions while respecting the constitutional powers of individual states.
The Vice President also emphasised the importance of private sector participation, noting that government funding alone would not be sufficient to meet Nigeria’s electricity infrastructure needs.
“Government cannot finance this transformation from the treasury alone; private capital must arrive with technology and expertise. Transparent licensing, predictable regulation, commercially viable markets, investment safeguards and credible dispute resolution will earn investors’ confidence,” he said.
He reaffirmed President Bola Ahmed Tinubu’s commitment to expanding electricity access through policies and partnerships aimed at encouraging investment, strengthening institutions and improving service delivery.
Shettima further called for stronger consumer protection measures against arbitrary billing, poor service delivery and unfair commercial practices, insisting that electricity operators must be held accountable for the quality of services provided.
He said the success of the Electricity Act would ultimately be measured by its impact on ordinary Nigerians, businesses and investors who depend on reliable electricity.
Earlier, the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, who represented the Minister of Power, said the success of the legislation would depend on the ability of states to establish credible institutions and commercially viable electricity markets.
Mamman noted that state-level electricity planning would enable governments to respond more effectively to local demand, infrastructure needs and other challenges affecting power supply.
Also speaking, the Director-General of the Nigeria Governors’ Forum, Dr Abdulateef O. T. Shittu, said the forum was working to strengthen coordination between federal and state institutions to support the implementation of the Act.
He disclosed that efforts were underway to develop a standard tariff framework for states to protect consumers while encouraging investment and ensuring commercial sustainability.
Shittu urged stakeholders to ensure that any amendments to the existing legal framework strengthened progress already recorded in electricity regulation.
In her remarks, the Deputy General Manager (Compliance) and Head of Compliance at NERC, Hauwa Yakubu, disclosed that the commission had issued regulatory transfers to 17 states, with Akwa Ibom being the most recent.
She said NERC continued to support emerging state electricity regulators through peer-to-peer training and technical engagement.
According to Yakubu, the Electricity Act 2023 introduced a new era of multilevel electricity regulation by bringing regulatory responsibilities closer to consumers and allowing states to address their specific electricity challenges.
The workshop reaffirmed the importance of collaboration among federal and state governments, regulators and private investors in translating the provisions of the Electricity Act 2023 into improved electricity access, economic growth and sustainable energy development across Nigeria.
Shettima Urges States to Leverage Electricity Act 2023 to Attract Investment, Improve Power Supply