Electricity reform leaves states unready as Tinubu’s policy exposes gaps in manpower, planning, and consumer safeguards.
Tinubu’s Power Reform Sparks Readiness Crisis
When President Bola Tinubu signed the Electricity Act in 2023, he promised a new era of decentralised energy governance one that would put power directly in the hands of state governments.
For millions of Nigerians weary of darkness, overbilling, and endless excuses, the news sounded like a breath of fresh air.
But nearly a year after the law’s passage, the picture looks less promising.
While some states have indeed taken control of their electricity markets, the underlying truth is this: most of them were not ready for the responsibility.
The reform was designed to transfer power literally and figuratively from the federal government to the states.
What it may have unintentionally revealed is just how ill-prepared many states are to regulate, manage, and sustain a functional electricity market.
From Abuja to the States But at What Cost?
The Electricity Act 2023 decentralised Nigeria’s electricity sector, breaking the long-standing monopoly of the Nigerian Electricity Regulatory Commission (NERC).
For the first time in history, individual states could set their own tariffs, issue licences, and prosecute power theft independently of the federal regulator.
In theory, this aligns with true federalism. In practice, it’s proving to be a bureaucratic minefield.
So far, only seven states Enugu, Oyo, Ondo, Ekiti, Imo, Edo, and Kogi have fully transitioned to self-regulation. Another four Lagos, Ogun, Niger, and Plateau are in the process.
Anambra just passed its law. That leaves 24 states still watching from the sidelines.
But beyond the numbers lies a deeper concern: regulatory ambition is outpacing regulatory capacity.
Behind the Headlines: A Vacuum of Experience
At first glance, the story sounds progressive. But beneath the surface, it reveals a troubling lack of preparation.
According to a senior official at NERC, most state governments have little understanding of what electricity regulation actually entails.
“Setting a fair tariff isn’t like setting market prices for garri,” the official said. “Only a few experts in Nigeria know how to do it correctly, and even fewer are working at the state level.
It’s not a political post. It’s deeply technical.”
The official, who spoke on condition of anonymity, warned that even relatively simple issues like tariff setting, loss computation,
and asset delineation are proving too complex for some state teams.
In plain language: states wanted power, but few had the tools to manage it.
Power Without Tools: Why States Are Struggling
The reform assumed that once legal authority was transferred, states would build the institutions required to support the new market. That hasn’t happened in most places.
Here are just a few of the gaps:
1. Lack of Skilled Manpower
States need economists, engineers, tariff experts, dispute resolution specialists, and customer service professionals. Most have none of these in place.
Even states with functioning commissions have staff learning on the job.
2. Regulatory Inertia
Out of the 11 states approved by NERC to start the transition, only four have passed enabling laws or published any regulatory guidelines.
The rest are in a state of limbo technically in charge but practically unready.
3. Consumer Confusion
In some states, customers don’t even know who regulates their electricity anymore. Is it still Abuja?
Or the governor? Complaints have been lost in transition. Calls go unanswered. Enforcement is weak to nonexistent.
New Law, Same Old Darkness?
For all the hope the Electricity Act brought, there’s now a real risk of regulatory abandonment.
Consumer rights groups like PowerUp Nigeria and the All Electricity Consumers Protection Forum are raising red flags.
They worry that in states where NERC has exited but no strong local body has taken its place, customers are left in the dark literally and figuratively.
“No one is holding the Discos accountable,” said Adetayo Adegbemle, Executive Director of PowerUp Nigeria. “Some states are simply not showing the urgency needed.
They asked for autonomy but now seem stuck in confusion.”
The result? Billing complaints are piling up. Metering issues remain unresolved. And in many areas, power supply has not improved since the handover.
The Tariff Time Bomb
One of the most sensitive issues under the new system is electricity pricing.
With the federal government out of the picture, each state is now expected to decide whether to subsidise electricity or let market forces determine prices. That’s easier said than done.
Some states, like Lagos, have the economic muscle to absorb subsidies or invest in off-grid power. Others already struggling to pay salaries do not.
This means electricity could become more expensive in some states than others, widening inequality and breeding discontent.
“If you’re in a poor state with high tariffs and no enforcement, it’s a recipe for chaos,” said Kunle Olubiyo of the Nigeria Consumer Protection Network.
“You’ll see more power theft, vandalism, and consumer rebellion.”
Who Protects the Consumers Now?
In the old order, NERC had a national complaints platform, field offices, and clear enforcement mechanisms. With the decentralisation, that safety net is gone.
State commissions are expected to take over consumer protection, but most have no hotlines, no inspectors, and no penalties in place for erring operators.
Take Enugu, for example. It is one of the few states that have acted. Its regulator, the Enugu State Electricity Regulatory Commission, recently sanctioned MainPower for overbilling customers in April.
But such enforcement is the exception, not the rule.
In most states, consumers now have fewer rights than they did a year ago.
States Building from Scratch Too Slowly
What many forget is that NERC was not built in a day. It took years to develop the frameworks and technical skillsets that make it functional.
Now, states are expected to replicate that in just months often without federal funding or technical support.
Professor Mobolaji Aluko, Infrastructure Commissioner in Ekiti State, acknowledged the difficulty of the transition.
“We’ve set up our bureau and appointed leadership,” he said. “But this will take time. We’re encouraging alignment with existing NERC guidelines while building our own.”
Experts agree that the Electricity Act was right in principle but possibly rushed in execution.
Federalism or Fragmentation?
There’s growing fear that if each of Nigeria’s 36 states sets its own power rules without coordination,
the country could end up with a fragmented patchwork of regulatory environments none robust enough to truly improve power supply.
“If we’re not careful,” warned energy law expert Prof. Dayo Ayoade, “we’ll go from one inefficient central system to 36 smaller inefficient systems.”
He urged the federal government to stay involved by offering transitional support, model regulations, and training programs to help state commissions mature.
Can Decentralisation Still Succeed?
Yes but only if states take their new roles seriously.
That means:
Hiring competent regulators, not political appointees
Establishing consumer protection frameworks
Setting realistic tariffs based on economic realities
Creating state-level complaint handling systems
Collaborating with neighbouring states for shared infrastructure
More importantly, state governments must see this as a long-term investment, not a quick win.
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Power is a Responsibility
Electricity reform is a noble idea but it’s not just about politics or policy. It’s about people.
About the student who can’t read at night. The small business that loses profit when the fridge goes off. The hospital relying on backup generators.
For this reform to work, states must rise beyond ambition and deliver results.
Because in this new phase, power isn’t just what you hold it’s what you prove you can handle.
Your Voice
Are you in a state where the power sector is now under local control?
Have you seen improvements or faced new challenges with billing, service, or response time?
Share your experience in the comments below or email us at: [email protected]
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