Governors have called for the protection of states’ electricity regulatory powers in proposed amendments to the Electricity Act 2023, warning that uncertainty over the responsibilities of federal and state institutions could discourage investment and delay projects.

The Nigeria Governors’ Forum (NGF) said the amendments must preserve the progress made in decentralising electricity regulation and strengthen states’ capacity to develop their markets and protect consumers.

The call came as Vice-President Kashim Shettima proposed an annual review of states’ electricity reforms to track implementation, identify bottlenecks and accelerate investment in improved power supply.

They spoke at the opening of a National Stakeholders’ Workshop on the Electricity Act 2023 in Abuja, themed “Empowering the States: Reviewing the Electricity Act 2023.”

NGF Chairman and Kwara State Governor, Abdulrahman AbdulRazaq, said stakeholders must ensure that the proposed amendments strengthened, rather than undermined, states’ authority over electricity operations within their territories.

Represented by the forum’s Director-General, Abdulateef Shittu, AbdulRazaq identified the protection of state authority over intrastate electricity operations, the licensing and regulation of mini-grids, and expanded technical oversight responsibilities proposed for the Nigerian Electricity Management Services Agency as areas requiring careful consideration.

“Uncertainty over regulatory authorities can increase compliance costs, delay project completion and weaken investors’ confidence,” he said.

He said clear rules and effective coordination between federal and state institutions would help attract private capital and accelerate rural electrification.

AbdulRazaq disclosed that the forum had undertaken a comparative review of the proposed amendments to assess their implications for state electricity markets, regulatory autonomy and consumer protection.

He said the NGF had supported states through technical workshops, legislative and regulatory templates, policy coordination and efforts to develop a standardised tariff methodology.

The forum had also worked with partners, including the British High Commission and UK International Development, to assess states’ readiness, strengthen regulatory frameworks and identify investment opportunities.

AbdulRazaq said the next phase of reform required regulatory clarity, institutional coordination and investment certainty, urging participants to develop practical solutions that balanced national coordination with states’ legislative responsibilities.

Shettima, represented by the Deputy Chief of Staff to the President, Ibrahim Hassan Hadejia, proposed a National Electricity Reform Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the NGF and state electricity regulatory institutions.

The framework would enable participating states to assess progress, share experience and identify challenges in developing electricity markets, attracting investment and protecting consumers. Participation would be voluntary and respect the constitutional and statutory powers of individual states.

Shettima urged states yet to establish electricity regulatory commissions to begin the necessary legislative and institutional processes without delay, while those that had made progress should share their experience and technical expertise.

He warned against creating regulatory bodies that existed only on paper.

The success of the reform should be measured not by the number of commissions established, but by the electricity generated, investments attracted, jobs created, reliability of supply and improvements in the lives of our citizens,” he said.

The vice-president said government alone could not provide the capital, technology and expertise required to transform the sector, urging states to adopt transparent licensing procedures, predictable regulations and commercially viable market arrangements.

He also called on states to identify their energy resources and develop viable projects capable of expanding electricity access, creating jobs and stimulating economic growth.

Consumer protection, he said, must remain central, with regulators ensuring fair billing, reliable service, effective complaint-resolution mechanisms and accountability by operators.

“The average Nigerian is not interested in the complexities of electricity regulation. He wants electricity that works,” he said.

Shettima urged the workshop to recommend practical steps for implementing the proposed framework, strengthening state regulatory institutions and establishing clear timelines for monitoring progress.

Minister of Power, Joseph Tegbe, represented by the ministry’s Permanent Secretary, said credible institutions, private capital and improved services would determine the success of the reforms.

“A regulator on paper is not a functioning market,” he said.

Tegbe said state regulators needed competent commissioners, technical and legal personnel, transparent licensing and tariff processes, adequate funding and sufficient independence to discharge their responsibilities.

Investors, he added, required credible tariffs, enforceable contracts and predictable regulations, while states needed transparent and sustainable arrangements to bridge the gap between electricity supply costs and what consumers could afford.

He warned that existing contracts and financial obligations would not disappear with the transfer of regulatory responsibilities, urging states to protect consumers, suppliers and investors throughout the transition.

The Minister also called for clear arrangements between state electricity markets and the national grid, noting that many states would continue to depend on grid supply while developing independent generation and distributed energy solutions.

He urged states to work with development finance institutions and private investors to develop bankable projects, including mini-grids for underserved communities, renewable energy schemes and reliable power for industrial clusters and agricultural enterprises.

NERC Chairman, Musiliu Oseni, represented by Hauwa Yakubu, said the commission had issued transfer orders to 17 states following compliance with the requirements of the Electricity Act 2023.

He said NERC had supported emerging state regulators through training, capacity-building programmes and technical engagements.

Oseni said decentralisation brought regulation closer to consumers and enabled greater responsiveness to local needs, while NERC retained responsibility for interstate and international electricity operations.

He cautioned that the transition required careful management to maintain a fair, stable and predictable regulatory environment and sustain investor confidence.

The workshop, he said, provided an opportunity to assess progress, address implementation challenges and strengthen coordination between federal and state regulators. (The Sun)