STATES ACCUSE FEDERAL GOVERNMENT OF SABOTAGING POWER SECTOR DECENTRALISATION

State governments have accused the federal government of attempting to
reverse the gains of power sector decentralisation, warning that proposed
amendments to the Electricity Act will erode their newly granted autonomy
and undermine Nigeria’s electricity reform trajectory.
They stated this on Tuesday a meeting between the Minister of Power,
Adebayo Adelabu, and state commissioners of energy, who demanded
full respect for subnational regulatory powers, especially over electricity
tariffs, licensing and distribution systems.
The discussion was against the backdrop of rising tension over the
announcement by the Enugu Electricity Regulatory Commission to reduce
the cost of the Band A tariff from 209 to 160 naira per kilowatt-hour.
The Federal Government rejected the decision, insisting that state
governments would be responsible for covering any market shortfall or
subsidy.
The Nigerian Electricity Regulatory Commission also maintained that
states lack jurisdiction over the national grid and power stations established
under federal laws or operating under NERC-issued licences.
However, at the meeting, Chairman of the Forum of Power Commissioners,
Eka Williams, criticised the ministry for stalling earlier agreements reached
with the Nigeria Governors’ Forum, including the formation of a joint
federal-state coordination committee on electricity.
Williams raised concerns on the Federal Government’s handling of
electricity sector reforms, warning against any move to centralise powers
already devolved to the subnational level under the Electricity Act, 2023.
He also talked about the lack of clarity on state equity in power assets,
insufficient collaboration, and the slow pace of regulatory harmonisation
despite repeated calls.