Market Not Mature Enough — FG Suspends Transfer Of Electricity Oversight To States

Market Not Mature Enough — FG Suspends Transfer Of Electricity Oversight To States

Minister of Power, Adebayo Adelabu, has announced the suspension of the transfer of regulatory authority to state governments…..read also FG And EFCC Join Forces To Combat Fake News In Nigeria

Speaking at the 8th edition of the Africa Energy Market Place (AEMP) conference in Abuja on Friday, May 17, Adelabu explained that the decision was made because state governments and stakeholders in the power sector need a proper understanding of what is required to operate an electricity market.

Adelabu emphasized the importance of understanding the transfer of regulatory oversight for the electricity market to ensure the survival and sustainability of the nation’s power sector. He stated:

“We must tread carefully and not rush. The market is not mature enough. With everything centralized under a single regulator, we already face numerous issues. Creating a regulatory framework across all 36 states must be done systematically and strategically.

We need a few states as pilots, which is why I halted further granting of regulatory autonomy to states.”

Regarding the pilot transfer of regulatory oversight to selected states across the geopolitical zones, the minister added:

“When we have each zone represented in the pilot and allow it to run for three to six months or up to a year, all potential issues will be identified and addressed before granting further regulatory autonomy.

Granting a state regulatory autonomy means overseeing generation, transmission, and distribution within that territory, including tariff setting. States must understand the financial and regulatory responsibilities involved.

Therefore, we need to ensure that everyone fully comprehends the implications of full or partial regulatory autonomy before moving towards a mature electricity market.”