Key points
- The Federal Government has inaugurated a nine-member inter-agency committee on electricity market decentralisation.
- The committee has four weeks to resolve implementation issues and strengthen the Electricity Act 2023.
- The panel will be chaired by the Minister of Power, Joseph Tegbe.
- Government says collaboration is essential to building a reliable and investor-friendly electricity market.
Main story
The Federal Government has inaugurated a nine-member Inter-Agency Committee to coordinate the implementation of Nigeria’s decentralised electricity market and address emerging regulatory and operational challenges.
Minister of Power, Joseph Tegbe, inaugurated the committee during a workshop on electricity market decentralisation in Abuja.
Tegbe, who will chair the committee, said its mandate includes promoting sustained collaboration among power sector institutions, resolving implementation issues and supporting the effective operationalisation of the Electricity Act 2023.
According to him, the committee has been given four weeks to review issues raised by stakeholders, engage relevant agencies and submit recommendations for implementation.
The minister described the transition to a decentralised electricity market as one of the most significant reforms undertaken in Nigeria’s power sector in recent decades.
He said the success of the reform would depend on collaboration among institutions rather than competition, stressing the need for regulatory certainty and coordinated implementation.
Tegbe noted that a functional Nigerian Electricity Supply Industry remained critical to economic growth, industrialisation, job creation, digital transformation and improved living standards.
He added that reliable electricity was essential to the performance of key sectors, including manufacturing, agriculture, mining, financial services, telecommunications and information technology.
The minister said the responsibility of stakeholders extended beyond their individual institutional mandates, describing the successful implementation of the reforms as a national obligation.
He emphasised that electricity market decentralisation should not be interpreted as fragmentation but as a structured distribution of responsibilities within a single integrated national electricity system.
Tegbe welcomed the commitment of stakeholders to deepen consultations and strengthen the implementation framework, expressing confidence that the collaborative approach would support the development of a modern, reliable and investor-friendly electricity market.
The issues
The Electricity Act 2023 allows states to regulate electricity markets within their jurisdictions, marking a major shift from the previous centralised system. Effective coordination among regulators and industry stakeholders is considered essential to ensure a smooth transition and avoid regulatory conflicts.
What’s being said
“The decentralisation of the electricity market should not be viewed as fragmentation. It should rather be understood as the intelligent distribution of responsibilities within one integrated national electricity ecosystem.” — Joseph Tegbe, Minister of Power
What’s next
The committee is expected to conclude its review within four weeks and present recommendations aimed at improving coordination and accelerating the implementation of Nigeria’s decentralised electricity market.
Bottom line
The new inter-agency committee is expected to play a key role in ensuring that Nigeria’s electricity market reforms are implemented in a coordinated manner, helping to attract investment and improve power supply nationwide.
