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States Warn FG Against Reversing Power Sector Decentralization Gains

State governments have expressed concerns that the Federal Government is attempting to reverse the gains of power sector decentralization, warning that proposed amendments to the Electricity Act could erode their autonomy and undermine Nigeria's electricity reform trajectory.

At a high-level meeting between the Minister of Power, Adebayo Adelabu, and state commissioners of energy, governors' representatives demanded full respect for subnational regulatory powers, especially over electricity tariffs, licensing, and distribution systems.

The tension stems from the Enugu Electricity Regulatory Commission's decision to reduce the cost of the Band A tariff, which was rejected by the Federal Government.

State commissioners argued that they have made significant progress in establishing independent regulators and enacting electricity laws, but gaps remain, particularly around transparency and cooperation.

The Minister of Power urged caution in the implementation of state-level electricity markets, stressing the need for synergy to protect the integrity of the national grid and avoid regulatory chaos.

Despite heated exchanges, both sides committed to more structured engagements and called for the urgent constitution of the federal-state electricity coordination committee to resolve future disputes and harmonize efforts.