Nigeria: Power Minister Sets Up Committee to Advance Electricity Market Reforms

Nigeria’s Minister of Power, Hon. Joseph Tegbe, has inaugurated a nine-member inter-agency committee tasked with addressing challenges linked to the implementation of the country’s decentralised electricity market under the Electricity Act, 2023.

The Nigerian Electricity Regulatory Commission (NERC) said the committee, chaired by Hon. Tegbe, has been given a four-week timeline to review concerns identified during a workshop on legal, policy and regulatory coordination between federal and state institutions held in Abuja on July 14.

The committee will focus on strengthening collaboration among key stakeholders, resolving implementation bottlenecks and supporting the effective rollout of the Electricity Act, which provides the framework for state participation in Nigeria’s electricity market.

Speaking at the workshop, Hon. Tegbe described the shift towards a decentralised electricity system as one of the most significant transformations in Nigeria’s power sector in recent years.

He said the success of the reform would depend on cooperation among institutions, clear regulatory frameworks and a collective commitment to improving electricity services for Nigerians.

According to the minister, reliable electricity remains essential to driving economic growth, industrial development, job creation, digital advancement and improving living standards. He noted that sectors such as manufacturing, agriculture, mining, telecommunications, financial services and information technology all rely heavily on a stable power supply.

Hon. Tegbe stressed that decentralising the electricity market should not be interpreted as dividing the sector, but rather as a restructuring of responsibilities within a coordinated national electricity framework.

He added that continued engagement between federal and state authorities would help create a more efficient, reliable and investment-friendly electricity market capable of attracting private sector participation and expanding access to power.

The Electricity Act, 2023, permits Nigeria’s 36 states to establish and regulate their own electricity markets, ending the federal government’s exclusive control over electricity generation, transmission and distribution activities in areas where states have enacted relevant legislation.