FG Cautions States on Independent Power Projects

The Federal Government has urged state governments to avoid making solo moves in developing their own electricity markets.

This call comes amid rising concerns that such actions could destabilize the national power grid and discourage private investment in the energy sector.

The warning was issued on Tuesday by the Minister of Power, Adebayo Adelabu, during a meeting with state energy commissioners in Abuja. The gathering followed recent developments in Enugu, where the state’s electricity regulatory commission reportedly reduced electricity tariffs without federal input.

Adelabu acknowledged that the 2023 Electricity Act gives states the right to manage their electricity markets. However, he stressed that decisions must be coordinated with federal authorities to protect the integrity of the national grid and ensure the smooth operation of power supply across state lines.

He explained that Nigeria’s power market functions as a single, interconnected system. If states begin to operate independently, technical and regulatory clashes may occur, potentially affecting power stability nationwide. Such conflicts could interrupt electricity to neighboring states and shake investor trust in ongoing and future projects.

The minister emphasized that while progress has been made—such as signing the Electricity Act 2023, drafting a new National Integrated Electricity Policy, and attracting new investments in generation and transmission—these gains are still early steps. For lasting change, he said, cooperation between the federal and state governments must become stronger.

Adelabu called on state officials to direct their focus toward expanding power supply to unserved and underserved communities. He said that reaching these areas is a major part of the national electrification plan, and the goal can only be achieved through collaboration.

He added that while states may be eager to shape their own energy policies, they must recognize that electricity is not confined within geographical boundaries. Every grid connection, every transmission line, and every distribution decision affects the wider system. That’s why alignment between all levels of government is not just ideal, but essential.

With power supply still unstable in many regions, the Federal Government is looking to avoid fragmentation in the sector. By encouraging teamwork rather than competition between states and Abuja, the administration hopes to maintain grid reliability while opening up new opportunities for investment and innovation in Nigeria’s energy market.