Minister of Power, Adebayo Adelabu, has called for improved coordination between federal and state power agencies to prevent distortions in the electricity market.
Adelabu made the call during a meeting with state commissioners for energy in Abuja.
The meeting was convened following the recent tariff reduction by the Enugu Electricity Regulatory Commission from N209/kWh to N160/kWh for Band A customers.
“As you embark on the development of your respective state electricity markets, I wish to emphasise the importance of enhanced coordination between the federal and state governments,” Adelabu said.
”While we fully respect the constitutional rights of states to determine how their electricity markets should evolve, it is equally critical to involve the federal government.
“Particularly as the custodian of the national grid and wholesale market to ensure that market developments at the state level do not inadvertently disrupt the stability and efficiency of the entire sector,” he said.
The minister said the national electricity market is an interconnected system that depends on coordinated generation, transmission, and distribution operations across state borders.
Also, he stated that any misalignment or uncoordinated action at the sub-national level could create technical, commercial, or regulatory conflicts that weaken grid stability, disrupt power supply to neighbouring states, and undermine investors’ confidence.
Adelabu said that by working together and ensuring alignment, stakeholders could safeguard the integrity of the national grid, optimise resources, and provide reliable and affordable electricity to all Nigerians, regardless of their location.
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“I also urge you to prioritise the electrification of unserved and underserved communities within your states. Expanding access for those who need it most remains a central pillar of our national electrification agenda.
“The Rural Electrification Agency stands ready to provide you with the technical and financial support needed to deliver impactful projects and innovative solutions like mini-grids and standalone systems that extend electricity access to our most remote and energy-poor areas,” Adelabu said.
The minister reiterated the importance and the need for strong regulatory alignment and collaboration across the entire electricity value chain.
“Our common goal is to ensure that every Nigerian, regardless of location, has access to reliable electricity that powers homes, businesses, industries, and drives our collective economic growth.
“To achieve this, regulators at the federal and state levels must work hand in hand to harmonise standards, coordinate frameworks, and provide investors with clarity and confidence in the stability of the market.
“A fragmented regulatory environment, where different rules and standards apply without alignment, creates uncertainty for investors and operators alike,” he said.
Chairman of the Forum of Commissioners for Power and Energy in Nigeria, Eka Williams, said that while there was no conflict between the states and the federal government over electricity market administration, the states remain committed to ensuring value for money for electricity consumers.
He said states had consistently championed initiatives aimed at the successful implementation of the Electricity Act.
“We need to clear the states’ position on the proposed amendment to the Electricity Act,” he said.
Special adviser to the Enugu State governor on Power, Joe Aneke, stated that the tariff reduction was based on data provided by MainPower Electricity Distribution Limited, a subsidiary of the Enugu DisCo responsible for power supply in the state.
He noted that states now have the authority to regulate electricity distribution, adding that the new tariff did not affect the wholesale cost of electricity.
