By Okoi Obono-Obla
Rethinking Federal Intervention in Nigeria’s Decentralised Electricity Sector
Why should the Minister be the one to initiate the process of moving States to establish Ministries of Power, when the Electricity Act, 2023 (as amended) has already decentralised electricity generation, transmission, distribution, and regulation?
The Act expressly empowers States to legislate and regulate electricity within their jurisdictions. Section 2(2) provides that States may enact laws for electricity generation, transmission, and distribution within their territories, while Section 31 establishes the framework for State Electricity Regulatory Commissions (SERCs). Furthermore, Section 62 decentralises tariff determination, allowing States to set tariffs for intra‑state supply, thereby reinforcing their autonomy.
Against this backdrop, the Minister’s role under Section 3 remains primarily one of policy formulation and coordination at the national level, not direct intervention in State structures. The Act envisages a cooperative federalism model, where the Federal Government provides overarching policy direction while States exercise regulatory and operational authority. Thus, urging States to create Ministries of Power appears redundant, given that the Act already decentralises responsibilities and empowers States to act independently in the electricity sector.
Conclusion:
The Electricity Act, 2023 (as amended) envisions a pluralistic power sector where both tiers of government collaborate but respect each other’s boundaries. The Minister’s leadership is vital, but it must be facilitative—providing guidance and harmonisation—rather than directive. States, already empowered by law, should seize this decentralisation to build strong institutions and deliver electricity solutions tailored to their local needs. In this way, the Act’s promise of cooperative federalism can translate into real progress for Nigeria’s power sector.
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