FG Constitutes Inter-Agency Panel to Navigate Electricity Market Decentralisation Under 2023 Act

The Federal Government has established a nine-member inter-agency committee tasked with addressing the complex policy, regulatory, and operational challenges arising from the decentralisation of Nigeria’s electricity market. This strategic move aims to facilitate a smooth transition towards a more efficient and coordinated power sector, a critical enabler for national economic growth and industrialisation.

The initiative is directly linked to the Electricity Act of 2023, which empowers states to regulate their own electricity markets upon establishing functional regulatory agencies and meeting the requirements set by the Nigerian Electricity Regulatory Commission (NERC). To date, 16 states have formally assumed control of their interstate electricity markets under this legislation.

The composition of the committee was announced by the Minister of Power, Olasunkanmi Tegbe, during a high-level workshop in Abuja focused on harmonising legal, policy, and regulatory frameworks between federal and state institutions concerning the decentralisation of the Nigerian Electricity Supply Industry (NESI). The workshop, organised by the Federal Ministry of Power in collaboration with NERC, provided a crucial platform for dialogue and problem-solving.

Chaired by the Minister of Power, the committee’s mandate is to foster sustained engagement, resolve emerging implementation issues, and ensure the seamless operationalisation of the Electricity Act, 2023. The panel has a four-week timeframe to review issues identified during the workshop and present its resolutions, working collaboratively with all relevant stakeholders.

Minister Tegbe underscored the significance of this reform, describing Nigeria’s transition to a decentralised electricity market as one of the most impactful in the power sector in decades. He emphasised that success hinges on collaboration and regulatory certainty rather than institutional competition, highlighting electricity’s pivotal role in driving economic growth, industrialisation, job creation, digital transformation, and improving the quality of life for all Nigerians.

“Every sector of our economy depends upon it: Manufacturing, Agriculture, Mining, Financial Services, Telecommunications and Information Technology, to mention but a few,” the Minister stated. He further clarified that decentralisation should be viewed not as fragmentation, but as an “intelligent distribution of responsibilities within one integrated national electricity ecosystem.” The government’s commitment is to lay the groundwork for a modern, reliable, and investor-friendly electricity market that attracts investment and powers Nigeria’s economic aspirations under the Renewed Hope Agenda.

… FG Constitutes Inter-Agency Panel to Navigate Electricity Market Decentralisation Under 2023 Act … Naijaonpoint.