VP SHETTIMA TO STATE GOVERNMENT: Stop depending on FG for electricity

Vice President Kashim Shettima has urged state governments in the country to adopt local solutions in power generation by converting available resources into investments that can fuel agriculture, manufacturing, healthcare and education.

The Vice President cited solar power potential in Sokoto, Borno and Katsina, gas resources in Delta, Rivers and Bayelsa, as well as hydroelectric opportunities in Niger and Kebbi, which he said could be harnessed to generate electricity supplies in various states.

Shettima who spoke at the opening of the National Stakeholders Workshop on the Electricity Law 2023 at the State House Banquet Hall, Presidential Villa, Abuja on Wednesday, urged the state government to “get rid of the habit of waiting for Abuja to give every answer,” h

He urged them to end their dependence on the Federal Government for solutions to local electricity problems and to establish a functional electricity market under the Electricity Act of 2023.

The theme of the workshop was “Unlocking the 2023 Electricity Act for Sustainable Energy Development and Economic Growth in Nigeria,” and brought together federal and state agencies and regulators.

In a speech delivered by the Deputy Chief of Staff to the President, Ibrahim Hadejia, Shettima said Nigeria’s ambition to build a competitive industrial economy will remain hampered unless electricity reforms deliver reliable electricity for businesses, households and public institutions.

He said the law has created an opportunity to decentralize electricity governance and let countries build electricity markets that suit their economies and resources.

“This law authorizes states to develop and regulate interstate electricity markets within the framework of the constitution and applicable laws.

“The size, diversity and wealth of this country demands decentralization.

“Electricity supply must be a shared responsibility, pursued with innovation and accountability across the federation. Our states must get rid of the habit of waiting for Abuja to provide every answer,” he said.

He warned that legislation alone would not increase supply, and told countries that had not yet established regulators to start doing so without delay.

“Legislation cannot be implemented by itself. Countries that have not yet acted must immediately begin their legislative and institutional preparations.

“They need to establish a functional electricity regulatory body with technical competence and capacity,” he said.

The Vice President said the government cannot finance transformation only from cash.

“Private capital must be complemented by technology and expertise. Transparent licensing, predictable regulations, commercially viable markets, investment protection and credible dispute resolution will earn investors’ trust,” he added.

It also called for stronger consumer protections against arbitrary billing, poor service and unfair commercial practices, and said operators should be held accountable for service quality.

Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, representing the Minister of Power, Joseph Tegbe, said the success of the Act will depend on the country’s ability to build credible institutions and commercially viable markets.

The Director General of the Nigerian Governors Forum, Dr Abdulateef Shittu, said efforts were underway to develop a standard tariff framework for countries to protect consumers while attracting investment.

He urged stakeholders to ensure that any changes to the legal framework are based on the progress that has been achieved.

Head of Compliance at the Electricity Commission, Hauwa Yakubu, said his party had issued regulatory transfers to 17 states, the latest being Akwa Ibom.

He noted that the commission is supporting new state regulators through peer-to-peer training and technical engagement.

President Bola Tinubu signed the Electricity Act 2023 in June 2023, replacing the Electricity Sector Reform Act of 2005.

This allows states to license generation, transmission and distribution within their borders, while national regulators continue to oversee interstate issues.