FG Backtracks on Electricity Regulation Handover to States

FG overturns the decision to stop giving the states jurisdiction over power regulation.

The federal government has changed its mind and decided to resume transferring state governments' regulatory oversight of the electrical industry.

The announcement was made by the Minister of Power, Adebayo Adelabu, on Monday, May 20, at the Nigerian Electricity Regulatory Commission's (NERC) two-day stakeholders workshop in Lagos state.

The 36 state commissioners of power and energy attended the session, which was centered on implementing the Electricity Act.

“Granting of regulatory autonomy to states is a provision of the new Act and no one person can single-handedly go against the Act,” he said.

“It's a provision of the law and no law- abiding officer of the state will want to go against the law. It is already included and it must be duly respected.”

The minister's statements are a direct result of his recent declaration that he intended to halt the states' transfer of regulatory autonomy and instead start a pilot program with a few states.

The minister's authority to issue a directive in violation of the Act was called into question by this declaration.

However, Adelabu made it clear at the session that the Federal Government would follow the law's terms.

Adelabu did stress, though, that the event's main goal was to address any possible difficulties that might come up throughout the changeover.

Three states—Ondo, Ekiti, and Enugu—were given control over the power market by the NERC in April.

The Electricity Act stipulates that NERC must transfer jurisdiction to a state within six months of the state completing the legally mandated process.