The Forum of Power and Energy Commissioners in Nigeria (FPECN) has endorsed President Bola Tinubu’s ongoing electricity sector reforms, describing the decentralisation of the country’s power market as a landmark policy capable of transforming the Nigeria Electricity Supply Industry (NESI).
The forum said the reforms represent a significant shift in the administration and regulation of the power sector, providing states with greater opportunities to participate in electricity generation, transmission and distribution.
In a communiqué issued after its meeting, FPECN noted that the implementation of the Electricity Act and other reforms introduced by the Federal Government has created a framework for a more competitive and efficient electricity market.
According to the commissioners, decentralising the electricity sector will encourage investment, improve service delivery and accelerate access to reliable power across the country.
The forum said the reforms have empowered state governments to establish electricity markets within their jurisdictions, develop regulatory institutions and attract private sector investment to address longstanding power supply challenges.
FPECN described the new framework as a major departure from the previous centrally managed electricity system, arguing that increased state participation would promote innovation, competition and accountability within the industry.
The commissioners further stated that allowing states to regulate electricity within their territories would enable tailored solutions to local energy needs while reducing pressure on the national grid.
They expressed confidence that the ongoing reforms would stimulate economic growth by improving electricity supply to households, industries and businesses, thereby enhancing productivity and creating employment opportunities.
The forum also called for sustained collaboration among the Federal Government, state governments, regulators and private investors to ensure the successful implementation of the reforms.
It stressed the importance of policy consistency, regulatory certainty and adequate funding for electricity infrastructure, noting that these are critical to attracting long-term investment into the sector.
FPECN urged states that have not yet established electricity regulatory agencies to take advantage of the provisions of the Electricity Act by putting in place the necessary legal and institutional frameworks to develop viable state electricity markets.
The commissioners also emphasised the need to strengthen transmission infrastructure, expand distribution networks and promote renewable energy solutions to improve electricity access, particularly in underserved and rural communities.
Industry stakeholders have long argued that decentralising Nigeria’s electricity market could unlock significant investment in generation and distribution, while allowing states to pursue independent energy projects based on their unique economic and geographical advantages.
The endorsement by FPECN comes as the Federal Government continues to implement reforms aimed at addressing chronic electricity shortages, improving market efficiency and encouraging greater private sector participation in the power sector.
Analysts believe the success of the reforms will depend on effective coordination between federal and state authorities, sustained investment in infrastructure and the ability of regulators to maintain a transparent and predictable operating environment.
With the backing of the nation’s power and energy commissioners, the Tinubu administration’s electricity reform agenda has received another vote of confidence as efforts continue to build a more reliable, competitive and sustainable power sector capable of meeting Nigeria’s growing energy demands.
