States Push Back As FG Attempts To Reclaim Control Of f Power Sector

A sharp dispute is growing between state governments and the Federal Government over control of Nigeria’s electricity sector.

At the center of the tension is a proposed amendment to the Electricity Act that state officials say could roll back their hard-won regulatory powers and undo the gains of decentralisation.

State commissioners of energy raised the alarm during a meeting on Tuesday with the Minister of Power, Adebayo Adelabu. The discussion was tense, as representatives of governors expressed frustration with what they see as an attempt by the Federal Government to dominate a sector that the 2023 Electricity Act had opened up to states. They demanded that the FG stop interfering in areas now under subnational control, including licensing, distribution, and tariff regulation.

The disagreement follows recent controversy sparked by the Enugu State Electricity Regulatory Commission’s decision to slash electricity tariffs for Band A customers from ₦209/kWh to ₦160/kWh. The Federal Government opposed the move, insisting that states bear the cost of any subsidy they offer. The Nigerian Electricity Regulatory Commission (NERC) also restated that states do not have power over federal infrastructure such as the national grid or federally licensed power plants.

But states say the FG’s stance threatens their legal authority. Cross River State’s Commissioner for Power, Prince Eka Williams, who chairs the Forum of Power Commissioners, criticised the Federal Government for failing to keep its promise of a federal-state coordination committee. He said this absence has made collaboration difficult and blamed the FG for trying to reverse decentralisation through the backdoor.

Williams argued that states were acting within their legal rights under the new law. Many have already passed their own electricity legislation, issued mini-grid permits, and created regulatory agencies. According to him, the attempt to re-centralise control will only create confusion, weaken investor trust, and stall progress.

Rivers State’s Commissioner for Energy, Omaley Omaley, echoed that position. He said the states are not trying to create chaos but want a fair system where consumers benefit and investors can thrive. He pointed out that nearly 18 states have enacted power sector laws and have started building their own electricity markets. According to him, this development is not a threat to national unity but a step toward efficiency.

Omaley warned that without a shared framework, inconsistent tariffs and disconnected policies will confuse citizens and discourage investment. He urged the FG to stop treating the decentralised system as a challenge and instead focus on building cooperation.

In response, the Minister of Power, Adebayo Adelabu, called for caution. He warned that poor coordination between state and federal regulators could destabilise the national grid and reduce investor confidence. Adelabu stressed that while states have the legal right to manage electricity in their territories, the interconnected nature of the grid means there must be cooperation and alignment.

He reminded the gathering of some federal achievements, including the passage of the 2023 Electricity Act and the launch of a national electricity policy. He also noted the increasing private and international interest in Nigeria’s energy sector. But he insisted that a fragmented regulatory landscape would derail these gains unless states and the FG work together.

Enugu State officials defended their tariff reduction. Special Adviser to the Governor, Joe Aneke, said the state followed proper procedures and published all regulatory materials online. He said the attack on Enugu was political and warned that personalising the issue could damage the wider push for reform.

Enugu’s Commissioner for Engineering and Safety, Chinedum Ukabiala, a former NERC official, said the state acted lawfully and was open to dialogue but would not accept intimidation. He said his experience within NERC informed their approach and that Enugu had nothing to hide.

NERC Vice Chairman, Musiliu Oseni, tried to calm tensions by urging more collaboration. He warned that poorly planned tariff cuts could cause losses that the Federal Government would have to cover. He added that decentralisation has its benefits but needs to be handled carefully to avoid market disruptions.

Oseni also noted that many new state commissioners and regulators are former NERC staff and should understand the importance of coordination. He said regulatory power over distribution rests with states, but tariff policies must be realistic so that power companies don’t collapse.

As more than a dozen states push forward with their own electricity markets under the new law, the clash signals a major shift in how Nigeria manages its power sector. The federal government still controls generation, transmission, and the grid, but state-level assertiveness is reshaping the energy landscape.

Though the meeting ended behind closed doors, both sides agreed on the need for regular, structured engagement. The commissioners again called for the long-awaited federal-state electricity coordination committee to be set up, warning that delays could worsen disputes.

Stakeholders say the next few months will be critical as Nigeria navigates this new chapter in electricity reform. For now, the states remain firm in their demand for autonomy, while the Federal Government pushes for a more centralised system with tighter control.