Electricity Act: We Are Still Committed To Decentralised Market — States

The State governments, under the aegis of Forum of Commissioners for Power and Energy (FOCPEN), have dismissed claims that they were backpedalling from their commitment to ensure a decentralised and reliable power supply in the country.

The forum said no state has retreated from the reform, adding that instead, more states were passing laws, constituting commissions, and assuming regulatory powers every quarter.

The forum disclosed that since the passage of the Electricity Act, 23 states have passed laws to establish their electricity markets, with more states joining.

It also said 14 states now have formal NERC transfers of regulatory oversight.

FOCPEN said this in a statement jointly signed by its chairman, Prince Eka Williams, who is the commissioner of Power and Renewable Energy, Cross River State, and its Ag. secretary, Engr. Mohammed Ihiezue Abdulmutalib, who is commissioner of Rural and Energy Development in Kogi State.

The statement was issued in reaction to a report (not in LEADERSHIP), which, according to FOCPEN, suggested that the subnational governments have reversed course on power sector reforms following the enactment of the Electricity Act.

FOCPEN described the assertion in the article as erroneous, inaccurate, adding that it did not reflect the true position and progress of Nigeria’s States in advancing electricity market reforms.

Noting that they were advancing and not retreating, the forum said more states were actively engaging with the opportunities provided under the Electricity Act and were at different stages of legislation, regulatory formation, and market design.

Recounting the progress made across states, FOCPEN said: “Since the passage of the Electricity Act: Twenty (23) States have already passed enabling laws to establish their electricity markets, with more States joining.

“14 States now have formal NERC transfers of regulatory oversight. More States are joining the reform journey each month—recent examples include formal transfer processes for Bayelsa and Nasarawa.

“Also in its just concluded Energy Summit, Akwa Ibom State unveiled its state market blueprint, signaling strong intent to develop its state electricity market.

“Other States are similarly planning or hosting stakeholder engagements, workshops, and policy dialogues that will accelerate the localization of electricity governance.

“Regulatory Commissions have been constituted in pioneering States, with others at advanced stages of setting up theirs, showing that the state markets are operational, not theoretical.”

“States across all regions are actively exploring frameworks for independent regulation, tariff orders, and market design,” the forum added.

It further noted that the Electricity Act is a landmark piece of legislation that has opened the door for subnational participation.

The forum added that states were approaching the transition with seriousness and caution, ensuring that their frameworks were credible, bankable, and sustainable.

It said far from backpedalling, more states have come to recognise the benefits of energy independence, regulatory autonomy, and consumer-focused power market reforms.

FOCPEN said it was building capacity to ensure smooth implementation, financial sustainability, and consumer protection through collaboration with the federal government and development partners.

“The goal is to strengthen power supply, enhance accountability, and expand access through transparent and competitive state-level markets.

“The transformation of Nigeria’s electricity sector is a journey, not an event. FOCPEN and its member States remain fully committed to delivering on the promise of the Electricity Act, ensuring that the gains of decentralisation translate into reliable power supply, improved governance, and greater access for all Nigerians.

“We call on stakeholders and the media to report developments responsibly, reflecting the true progress and growing enthusiasm across Nigeria’s subnational governments,” FOCPEN stated.