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Power Minister Adelabu Warns States Against Uncoordinated Electricity Tariff Cuts
As the debate over the legality of electricity tariff cut by the Enugu Electricity Regulatory Commission (EERC) continues, the Minister of Power, Adebayo Adelabu, on Tuesday met with energy commissioners from the sub-nationals in a bid to resolve the pending issues.
At the event which took place in his office in Abuja, Adelabu reiterated the need for sustained collaboration with state governments to prevent regulatory fragmentation in Nigeria’s electricity market.
Adelabu, while briefing the commissioners, warned that uncoordinated actions by sub-national governments could destabilise the national grid and deter private sector investment, describing the national electricity market as an interconnected system.
He argued that any misalignment or uncoordinated action at the sub-national level could weaken grid stability, disrupt power supply to neighbouring states, and undermine investor confidence.
The minister acknowledged that states under the Electricity Act 2023, have constitutional rights to establish and operate their electricity markets, but stressed the importance of aligning with the federal framework, particularly in areas such as grid operations and wholesale electricity trade.
“While we fully respect the constitutional rights of states to determine how their electricity markets should evolve, it is equally critical to involve the federal government, particularly as the custodian of the national grid and wholesale market to ensure that market developments at the State level do not inadvertently disrupt the stability and efficiency of the entire sector.
“The national electricity market is an interconnected system that depends on coordinated generation, transmission, and distribution operations across state borders. Any misalignment or uncoordinated action at the subnational level can create technical, commercial, or regulatory conflicts that weaken grid stability, disrupt power supply to neighbouring states, and undermine investor confidence.
“By working together and ensuring alignment, we can safeguard the integrity of the national grid, optimise resources, and provide reliable and affordable electricity to all Nigerians, regardless of where they live,” he stated.
He urged the subnational governments to prioritise the electrification of unserved and underserved communities within their states, expanding access for those who need it most, noting that this remains a central pillar of Nigeria’s national electrification agenda.
Adelabu reiterated the importance and the need for strong regulatory alignment and synergy across the entire electricity value chain, explaining that the common goal is to ensure that every Nigerian, regardless of location, has access to reliable electricity that powers homes, businesses, industries, and drives our collective economic growth.
“To achieve this, regulators at the federal and state levels must work hand in hand to harmonise standards, coordinate frameworks, and provide investors with clarity and confidence in the stability of the market.
“A fragmented regulatory environment, where different rules and standards apply without alignment, creates uncertainty for investors and operators alike. It can lead to disputes, inefficiencies, duplicated efforts, and conflicting obligations that ultimately slow down sector development.
“By maintaining strong regulatory cooperation, we can create a level playing field, attract more private sector participation, protect consumers, and ensure that everyone is working towards the same vision of a modern, efficient, and inclusive electricity sector that supports Nigeria’s economic ambitions,” he added.
In his intervention, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, emphasised the importance of coordination, citing lessons from other countries like India.
He noted that while states have regulatory powers over electricity distribution, issues such as tariff setting, data integrity and market assumptions must be carefully harmonised to avoid technical and fiscal instability.
“We are all Nigerians. We want to pay as little as possible for electricity, but at the same time, we need to be realistic about what is commercially and technically feasible,” Oseni said.
He warned that if states adopt tariff assumptions or policies that negatively affect their utilities’ revenue, the resulting shortfalls could rebound to the federal government, which still guarantees payments to generation companies.
“This transition must be managed delicately. Any misstep, especially in tariff determination or customer classification, can result in underpayment to the market, leading to financial pressure on the federal government,” he said.
Besides, the Secretary of the Forum of Power Commissioners (FPC), Omale Omale, praised the minister’s convening power, describing the meeting as timely and essential. He underscored the forum’s legal and technical depth, noting that many states have passed electricity laws and established regulators.
Chairman of the forum, Eka Williams, called for the immediate constitution of a long-delayed federal-state steering committee. He expressed concern over the lack of clarity on state equity in distribution companies and the implementation of a new subsidy regime without consulting sub-national governments.
“We cannot support any amendment to the Electricity Act that seeks to reverse the spirit of devolution. The law empowers states, and any centralising move undermines the intent of reform,” Williams said.
He urged the federal ministry to create frameworks that involve all stakeholders, adding that state governments must be seen as partners, not just implementers.
Also speaking, the Special Adviser to the Enugu Governor on Power, Joe Aneke, and Commissioner for Engineering and Safety, Chinedum Ukabiala, said Enugu complied with the law and acted transparently. They criticised what they described as selective scrutiny and mis-characterisation.
“We only regulated distribution, not generation or transmission. Our methodology is based on accurate data and lawful processes,” Ukabiala stressed.
