Vice President Kashim Shettima has called on state governments across Nigeria to establish functional electricity markets and take greater responsibility for resolving power supply challenges in their respective jurisdictions.

Shettima said the Electricity Act 2023 had created an opportunity for states to develop independent electricity markets suited to their resources, economic needs and development priorities.

He made the call on Wednesday, October 21, while speaking at the opening of the National Stakeholders’ Workshop on the Electricity Act at the Presidential Villa in Abuja.

Represented by the Deputy Chief of Staff to the President, Ibrahim Hadejia, the Vice President said Nigeria’s industrial growth and economic ambitions depended on reforms that would guarantee reliable electricity for businesses, households and public institutions.

He urged state governments to move away from depending solely on the Federal Government to address electricity challenges, stressing that power supply must become a collective responsibility.

“Electricity supply must become a shared responsibility, pursued with innovation and accountability across the federation. Our states must shed the habit of waiting for Abuja to provide every answer,” he said.

Shettima identified the renewable energy potential of Sokoto, Borno and Katsina states, the natural gas resources of Delta, Rivers and Bayelsa, as well as the hydroelectric opportunities in Niger and Kebbi states.

He urged state governments to develop these resources into viable investments capable of supporting agriculture, manufacturing, healthcare, education and other critical sectors.

The Vice President warned that the passage of legislation alone would not resolve Nigeria’s electricity problems, insisting that states must establish competent regulatory institutions capable of managing their electricity markets.

“They need to establish functional electricity regulatory bodies with technical competence and capacity,” he said.

To promote cooperation among states, Shettima proposed a voluntary National Electricity Reform Peer Review and Implementation Framework involving the Nigerian Electricity Regulatory Commission (NERC), the Federal Ministry of Power, the Nigeria Governors’ Forum and state electricity regulators.

According to him, the proposed framework would enable states to share experiences and assess their progress in electricity market development, investment readiness, consumer protection and access to power.

He said annual voluntary assessments could help identify implementation challenges, encourage the exchange of technical expertise and provide support to states without undermining their constitutional powers.

“No state needs to purchase with failure the knowledge another state has already acquired,” the Vice President stated.

Shettima also emphasised the importance of private sector participation, noting that government funding alone would not be sufficient to finance the transformation required in Nigeria’s electricity industry.

He called for transparent licensing procedures, predictable regulatory policies, commercially sustainable electricity markets, investment protection and effective dispute-resolution mechanisms to attract private capital and technical expertise.

The Vice President further urged electricity regulators to protect consumers against arbitrary billing, inadequate service and unfair commercial practices while ensuring that operators were held accountable for their performance.

“The final verdict on this law will be delivered wherever a Nigerian reaches for a switch,” he said, underscoring the need for the reforms to produce tangible improvements in electricity supply.

Speaking on behalf of the Minister of Power, Joseph Tegbe, the ministry’s Permanent Secretary, Mahmuda Mamman, said successful implementation of the Act would depend on states establishing credible regulatory institutions and financially sustainable electricity markets.

Similarly, the Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, disclosed that work was ongoing on a standard tariff framework designed to balance consumer protection with the need to attract investment into the sector.

Hauwa Yakubu, identified as the electricity commission’s Head of Compliance, said regulatory transfer orders had been issued to 17 states, with Akwa Ibom being the latest.

She added that emerging state electricity regulators were receiving technical assistance and training through engagements with their counterparts.

President Bola Tinubu signed the Electricity Act into law in June 2023, replacing the Electric Power Sector Reform Act 2005 and establishing a framework that allows states to regulate electricity markets within their jurisdictions, alongside federal oversight of interstate electricity activities.

Akwa Ibom’s regulatory transfer order, dated August 18, 2026, reportedly set February 17, 2027, as the deadline for completing the transition to its state electricity regulator.

The push for electricity reforms comes amid persistent financial and operational challenges in the sector.

In March, power generation companies reportedly put their outstanding payments at approximately ₦6.8 trillion as of the end of February.

They also noted that Nigeria’s electricity generation had remained around 4,000 megawatts for years, despite installed generation capacity of approximately 14,000 megawatts.

The Vice President maintained that effective implementation of the Electricity Act, combined with stronger state institutions and private investment, would be critical to improving electricity access and supporting Nigeria’s economic development.