Two years after President Bola Tinubu signed the Electricity Act 2023 into law, Nigeria’s experiment with decentralising the electricity sector has delivered mixed results. The legislation ended the Federal Government’s exclusive control over electricity regulation, allowing states to establish their own electricity markets, regulators and distribution frameworks. While the reform was widely hailed as a landmark policy shift, implementation has varied sharply across the country.
As of April 2026, 15 states had completed the transfer of electricity regulatory powers from the Nigerian Electricity Regulatory Commission (NERC). These include Lagos, Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra and Bayelsa. The remaining 21 states, including Rivers, Kano, Kaduna and Delta, are yet to complete the transition, highlighting the slow pace of reform.
Lagos has emerged as one of the most ambitious reformers. The state enacted its Electricity Law in November 2024, established the Lagos State Electricity Regulatory Commission (LASERC), and formally assumed regulatory oversight in 2025. It has announced plans for embedded generation projects, mini-grids and large-scale solar street lighting.
However, the policy changes have yet to translate into meaningful improvements for consumers. Businesses and households continue to grapple with unreliable electricity supply, rising tariffs and heavy reliance on self-generation using diesel and petrol generators. Industry experts also point to the continued dependence on ageing national transmission infrastructure as a major constraint on the state’s ambitions.
Edo State presents a different picture. Its Electricity Law created the framework for a competitive electricity market, but the shutdown of the privately operated 95-megawatt Ossiomo Power Plant in 2025 following an ownership dispute exposed the risks facing private investment in the sector. Although many customers praised the plant’s service quality, the dispute forced several public institutions back onto the Benin Electricity Distribution Company network and raised concerns over investor confidence.
Kaduna has also enacted electricity legislation and pursued renewable energy partnerships, including collaboration with the Rural Electrification Agency. However, the state has yet to complete the formal transfer of regulatory authority from NERC. Consumers continue to complain about high electricity tariffs, inadequate metering and inconsistent power supply, while Kaduna Electric remains one of Nigeria’s weakest-performing distribution companies by revenue collection and metering coverage.
Some of the most encouraging examples have emerged elsewhere. Enugu has established a functioning state electricity market, while Ekiti has restored electricity to several communities that had been without power for years. In Abia, Geometric Power has significantly improved electricity supply to industrial clusters around Aba, boosting manufacturing productivity. Nevertheless, these gains remain geographically limited and have yet to benefit the majority of residential consumers.
Tariff policy also remains contentious. While some states have attempted to lower retail tariffs, disagreements with NERC over pricing authority underscore the challenges of balancing consumer affordability with the financial sustainability of electricity providers.
Overall, the Electricity Act has laid the legal foundation for a more competitive and decentralised power sector, but execution remains uneven. Regulatory capacity, infrastructure investment, political commitment and policy consistency will ultimately determine whether state-led electricity reform delivers the reliable and affordable power supply that households and businesses have long awaited.
