The Act specifically allows states to:
- Pass laws on all aspects of generation, transmission, system operation, distribution, supply and retail of electricity within that State
- Pass laws on the establishment, promotion and management of State electricity power stations
- Pass laws to establish a state electricity market, a state regulatory authority or any entity by whatever appellation with powers to regulate such markets;
- Collaborate with local governments and the federal government for rural electrification, or with local governments and distribution licensees to ensure electricity access to rural, unserved, and underserved areas, promote investments in electricity or provision of electricity within states or local government areas; or
- Create a State Integrated Electricity Policy and Strategic Implementation Plan.
- Issue licenses and regulate activities of Independent Electricity Distribution Network (IEDN) and Independent Electricity Transmission Network (IETN) licensees as long as the activities of such licensees do not depend on any part of the national grid.
As such, the Nigerian Electricity Regulatory Commission (NERC) assumes the role of regulating inter-state transactions while the State regulator is responsible for activities that occur entirely within the state.
Nigeria stands on the brink of a transformative venture that will not only reshape its power sector but also redefine the economic landscape. This ambitious transition to a multi-tier electricity market has the potential to accelerate electrification, fostering economic growth and development. However, unforeseen factors may arise, potentially causing delays.
The success of this initiative hinges on establishing a clear collaborative framework and adopting an agile approach to swiftly address challenges and rectify errors as they emerge. This transition requires meticulous planning, strong leadership, and a commitment to flexibility. The goal is not just to transfer regulatory authority but to ensure that each state can efficiently manage its energy resources, tailoring solutions to local needs and driving innovation in the sector.
Moreover, fostering partnerships between state governments, private investors, and wider sector stakeholders will be essential in leveraging expertise and resources. This collective effort can create a resilient energy infrastructure that supports Nigeria’s broader economic ambitions, paving the way for sustainable development and improved quality of life for all citizens.
As Nigeria embarks on this journey, the lessons learned and the strategies developed can serve as a model for other nations facing similar challenges, highlighting the potential of decentralized power systems to transform economies and empower communities.
