Federal Government Pushes States to Take Over Power Sector

The Federal Government has called on the 36 states to take over power generation, transmission, and distribution, citing it as the only solution to the country’s power crisis. Minister of Power, Adebayo Adelabu, made this known at the Nigeria Energy Leadership Summit in Lagos.

Adelabu emphasized that the Electricity Act 2023, signed by President Bola Tinubu’s administration, provides a robust governance and regulatory framework for the power sector. He noted that centralization of power generation and distribution has not worked for Nigeria, given its large size and diverse population.

– Devolution of regulatory powers: The Act empowers states to regulate the power sector.
– Subnational markets: States can now participate in the power sector value chain, including generation, transmission, and distribution.
-Private sector participation:The Act promotes competition and private participation in the power sector.

The Federal Government is pursuing a comprehensive agenda to reposition the power sector for sustainability, efficiency, and growth. This includes:

Reviewing and updating laws and regulations to support the power sector.
Implementing policies to attract private investment and improve service delivery.
Investing in infrastructure to improve power generation, transmission, and distribution.
Promoting the use of renewable energy sources.
Encouraging local participation in the power sector.
Building capacity to improve the efficiency and effectiveness of the power sector.

The Minister emphasized the need for private sector involvement in the power sector, stating that it is essential for achieving a reliable and efficient power supply. With the right policies and regulations in place, the power sector can be transformed to meet the needs of households, businesses, and industries across the country.