Power
Nigerian states urged to drive power sector reforms
Vice President Kashim Shettima is encouraging state governments to leverage constitutional reforms to improve local electricity supply amidst ongoing national grid failures.
Key points
- The Electricity Act 2023 allows Nigerian states to regulate, generate, and distribute electricity.
- The national grid experienced multiple collapses across 2025 and 2026, highlighting federal generation challenges.
- State-level initiatives such as Abia's Geometric Power Plant demonstrate alternative pathways for regional power supply.
What happened
According to reporting by Punch, Vice President Kashim Shettima has pointed to the Electricity Act 2023 as an alternative pathway for addressing Nigeria's persistent power supply challenges. The legislation devolved powers over electricity from the Federal Exclusive Legislative List to the Concurrent Legislative List, enabling states to engage directly in generation, transmission, and distribution.
The push comes as the federal government struggles to meet its commitments regarding steady electricity supply. Punch reported that the national grid suffered multiple collapses, including three incidents in 2026 and four in 2025, while the administration utilised bonds exceeding N4.4tn to settle legacy debts owed by the Transmission Company of Nigeria to generators and gas suppliers.
State initiatives and regional models
Several sub-national governments are already exploring decentralized power solutions. In Abia State, the 188-megawatt Geometric Power Plant has begun supplying electricity to parts of the state, despite occasional gas supply constraints noted in 2026. Meanwhile, Imo State is partnering with an Egyptian firm on the Orashi electricity project, and Lagos State aims to scale its daily power availability to 3,000 megawatts through a combination of grid allocation and independent power initiatives.
Analysts suggest that states could pool resources within geopolitical zones to establish regional markets, potentially lowering unit costs and driving down tariffs through competitive supply structures. Enhanced federal allocations following the removal of petroleum subsidies have also provided state exchequers with additional liquidity to fund critical infrastructure.
Why it matters
Reliable electricity is a foundational requirement for industrialisation and broad-based economic growth in Nigeria. World Bank figures for 2024 place electricity use per person in Nigeria at 140.6 kWh, significantly below the global average of 3,708.5 kWh, while national access to electricity stands at 62.5 percent compared to a global figure of 91.9 percent. For energy investors and policymakers, the decentralisation of the power sector offers a clearer framework for sub-national investments, reducing reliance on a historically overburdened national grid and opening new avenues for private sector participation across regional energy markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
