State governments are getting set to eliminate electricity subsidies in their territories as more states gear up to join others in running their different power markets under their own laws.
In a document put together by the Nigeria Governors’ Forum, titled, ‘Development of the National Integrated Electricity Policy and Strategic Implementation Plan Policy Recommendations by State Governments to the Federal Ministry of Power,’ the states also stated that they would implement different electricity tariffs in their domains.
They made these recommendations based on the enactment of the Electricity Act 2023. The Electricity Act 2023 is a federal law which repeals the Electric Power Sector Reform Act and is the extant legal framework for the Nigeria Electricity Supply Industry.
The EA 2023 establishes a multi-tier electricity market framework comprising of a (i) single, wholesale federal electricity market, and (ii) retail sub-national electricity markets. However, both markets are interlinked and interconnected by policies and regulations. The EA 2023 mandates a transition of regulatory powers from the Nigerian Electricity Regulatory Commission, an agency of the Federal Government, to States Electricity Regulatory Commissions upon states fulfilling the requirements for the transition as stated in the EA 2023.
