State Governments Firmly Reject Claims of Reversing Electricity Market Decentralisation

By John Alechenu

The Power and Energy Commissioners from all 36 states, united under the Forum of Commissioners for Power and Energy (FOCPEN), have firmly rejected allegations suggesting they are retreating from their pledge to create a decentralized and dependable electricity supply system across the country.

FOCPEN emphasized that no state has abandoned reform efforts; on the contrary, an increasing number of states are enacting legislation, forming regulatory bodies, and taking on oversight responsibilities each quarter.

Since the enactment of the Electricity Act, 23 states have passed laws to establish their own electricity markets, with additional states joining this initiative regularly.

Furthermore, 14 states have officially received regulatory authority transfers from the Nigerian Electricity Regulatory Commission (NERC).

This update was shared in a statement co-signed by Prince Eka Williams, FOCPEN chairman and Cross River State’s Commissioner for Power and Renewable Energy, alongside Engr. Mohammed Ihiezue Abdulmutalib, acting secretary and Commissioner for Rural and Energy Development in Kogi State.

The statement was issued to counter rumors circulating in some media outlets that subnational governments are reversing their stance on power sector reforms following the Electricity Act’s passage.

FOCPEN labeled these rumors as “inaccurate and misleading,” clarifying that they do not represent the actual progress made in advancing electricity market reforms throughout Nigeria.

The forum highlighted that its members, along with their governors, remain steadfast in pursuing the opportunities presented by the Electricity Act.

Efforts to domesticate the law are underway at various stages, including legislative approval, regulatory framework development, and market structuring.

FOCPEN detailed the ongoing advancements: “Since the Electricity Act was passed, 23 states have enacted enabling legislation to launch their electricity markets, with more states joining the reform movement.”

“Currently, 14 states have formalized the transfer of regulatory oversight from NERC, with others like Bayelsa and Nasarawa recently initiating this process.”

“At its recent Energy Summit, Akwa Ibom State revealed its comprehensive state market plan, demonstrating a strong commitment to developing its local electricity market.”

“Several other states are organizing stakeholder consultations, workshops, and policy discussions aimed at accelerating the decentralization of electricity governance.”

“Regulatory commissions have been established in pioneering states, while others are in advanced stages of formation, proving that these state markets are functional and not merely conceptual.”

“Across all regions, states are actively designing frameworks for independent regulation, tariff setting, and market operations.”