Concerns are mounting over the inadequate efforts of certain states to leverage the decentralization of electricity provided by the 2023 Electricity Act, thereby neglecting the construction of self-sufficient power systems. Stakeholders within Nigeria’s power sector have underscored the urgent necessity for states yet to embrace this opportunity to establish independent power systems capable of alleviating the ongoing energy crises.
As of September 2025, merely 12 states had taken steps to implement the decentralized electricity provisions of the Electricity Act 2023, while 24 states continue to hesitate in their adoption of the Act.
During the 10th Anniversary Memorial commemorating the late Foluseke Abidemi Somolu, held yesterday at the prestigious University of Lagos (UNILAG), stakeholders illuminated a plethora of entrenched systemic obstacles that plague Nigeria’s electricity sector. These challenges range from inadequate regulatory enforcement and insufficient infrastructure investment to inconsistencies in policy, fragile governance, and a sluggish transition towards sustainable energy solutions.
In his keynote address titled ‘Nigeria’s Power Sector Deregulation: History, Successes, and Failures – The Path Ahead,’ former president of the Nigerian Society of Engineers, Tasiu Wudil, lamented the expansive electricity access gap, pointing out that despite Nigeria’s impressive installed capacity exceeding 13,000 Megawatts for a population surpassing 220 million, only approximately 61 percent of Nigerians enjoy access to the electrical grid.
He stressed that the majority of reforms instituted thus far to address electricity issues have not fulfilled stakeholders’ expectations, bemoaning the continual constraints on industrial growth, which have not resulted in any tangible advancement in the nation’s economic landscape.
Wudil reiterated the imperative for states to wholeheartedly adopt the reforms delineated in the Electricity Act 2023 by establishing their regulatory frameworks to effectively confront the longstanding challenges within the energy distribution sector.
Citing findings from his recent research project, undertaken as part of the Senior Executive Course 46/2024, Wudil, an engineer, revealed that among the 10 countries (USA, UK, India, Columbia, Argentina, Brazil, Kenya, South Africa, Ghana, and Nigeria) featured in his comparative study, Nigeria’s performance was notably lacking in areas such as governmental role, regulatory effectiveness, generation company outcomes, and consumer perceptions.
In related news, he stated, “Regulatory independence in Nigeria is alarmingly low. The government must formulate policies that can be enacted with legislative support. Only then can we hope to resolve some of the issues currently afflicting us.”
He also critiqued the Service-Based Tariff (SBT) framework introduced by the Nigerian Electricity Regulatory Commission (NERC) in 2020, which categorizes electricity consumers from bands A to E, contending that such measures diminish service efficiency.
“Nigeria urgently needs a thorough transformation focused on fundamental governance issues rather than merely cosmetic reforms. Success necessitates unwavering political resolve, ample funding, effective coordination among stakeholders, and the implementation of challenging yet essential structural adaptations to secure reliable, affordable electricity, thus fostering significant economic progress,” he asserted.
