Nigeria’s landmark decentralisation of its electricity market is struggling to mobilise the billions of dollars required to revamp the power sector, as lingering uncertainties around payment security, sub-national creditworthiness, and regulatory frameworks continue to deter investors.
BusinessDay’s checks show that despite the enactment of the Electricity Act 2023, only 16 states have secured the legal autonomy to regulate their local power markets. They include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, Bayelsa, and Gombe states.
Of this group, just seven—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi—have fully assumed regulatory control. The remaining states, including major commercial hubs like Lagos and Ogun, as well as Niger, Plateau, Abia, Nasarawa, Anambra, Bayelsa, and Gombe, are still navigating the transition phase.
Explaining why the newly decentralised market has yet to trigger an investment boom, Ayodele Oni, an energy sector analyst and partner at Bloomfield LP,
This post was originally published on this site.
