Lagos, Kano, and 10 other states are finalizing plans to start generating power within their jurisdictions, aligning with the provisions of the Electricity Act 2023.
These states have enacted their electricity market laws and are awaiting approval from the Nigerian Electricity Regulatory Commission (NERC) to establish independent regulatory bodies, separate from the federal government’s NERC.
The move comes as the federal government faces backlash over a 240 per cent tariff hike for consumers in Band A, who previously enjoyed 20-hour electricity.
Various groups, including the Petroleum and Natural Gas Senior Staff Associations of Nigeria, civil society organizations, and the Nigeria Electricity Consumer Advocacy Network, have criticized the hike, warning that it will worsen the plight of Nigerians.
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Under the new Electricity Act signed into law in June 2023 by President Bola Tinubu, states have been empowered to generate, transmit, and distribute electricity within their jurisdictions.
This reform aims to address Nigeria’s longstanding electricity challenges by promoting private sector investments in the power sector and providing a framework for a holistic integrated resource plan and policy.
While states are gearing up for independent power generation, the NERC continues to regulate electricity businesses in states that have not yet passed their electricity market laws.
However, it is reported that at least 12 states have applied to establish their independent electricity regulatory commissions, indicating a significant shift toward decentralized power generation and distribution.
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States like Lagos, Edo, Kaduna, Enugu, and Oyo have already signed their electricity laws, with Lagos leading efforts to champion independent power generation. Ekiti State has also made strides in this direction, upgrading its Independent Power Project to 5MW and extending electricity services to various government offices and institutions.
Other states such as Benue, Nasarawa, Kebbi, Zamfara, and Sokoto are actively pursuing independent power projects to enhance their energy security and boost socio-economic activities.
These initiatives are seen as crucial steps towards addressing Nigeria’s power challenges and improving the quality of life for its citizens.
