“Where there is no vision, the people perish.” President Bola Tinubu’s decision to remove electricity from the exclusive legislative list is precisely the bold vision Nigeria needs to emerge from the darkness of powerlessness into a future of self-determined energy security.
For decades, Nigeria’s electricity crisis has been more than an infrastructural failure; it has been a source of profound national frustration and economic paralysis. The decision by President Bola Tinubu to sign the Electricity Act 2023, effectively removing electricity from the exclusive list, represents not just a policy shift but an emotional and psychological turning point for millions who have endured “paying for darkness instead of light” . This historic move empowers states, companies, and even individuals to generate, transmit, and distribute electricity, breaking a centralized monopoly that has long stifled innovation and localized solutions. It is a courageous step toward letting the ingenuity of Nigeria’s diverse communities solve one of their most pressing challenges.
The Burden of Centralized Power
Under the old system, Nigerians were trapped in a cycle of poor service with no alternatives. Communities could wait indefinitely for transformer repairs, often funding fixes themselves while bills for unrendered services continued unabated . The infamous estimated billing system became a symbol of this powerlessness, charging consumers for electricity they never received . This wasn’t merely an inconvenience; it was a barrier to small businesses, a threat to public health, and a daily reminder of a system that failed to serve the people.
The financial toll on the nation was staggering. Before the Act, the federal government was burdened with an annual electricity subsidy estimated at NGN 3.3 trillion (~$2.6 billion), a figure vastly exceeding budgetary provisions and highlighting the unsustainable economics of the centralized model .
The Transformative Advantages of Devolution
President Tinubu’s Electricity Act unleashes a new paradigm built on autonomy, competition, and local relevance. The benefits are tangible and deeply connected to community well-being.
· Empowerment of States and Communities: States can now establish their own electricity markets. As of late 2025, states like Edo, Ekiti, Enugu, Lagos, and Ondo have taken charge of their regulatory oversight . This allows them to tailor solutions to their unique resources; whether hydro, solar, or gas; and hold providers directly accountable.
· Unlocking Local Investment and Innovation: The Act allows anyone to generate up to 1 megawatt or distribute up to 100 kilowatts at a site without a license . This simple change unlocks immense potential for universities, large factories, and housing estates to build their own mini-grids, fostering energy independence.
· Promotion of Renewable Energy: The law mandates generation companies to meet renewable energy obligations, either by generating clean power themselves, purchasing it, or procuring renewable energy certificates . This built-in mechanism aligns Nigeria’s energy future with global sustainability goals.
· A Pathway to Cost-Reflective and Fair Tariffs: By decentralizing regulation, the Act aims to move toward tariffs that reflect real costs of service. Enugu State’s regulatory commission, for example, conducted a detailed review to propose a new, cost-reflective tariff structure for its residents . While this transition is sensitive, it is fundamental to attracting the investment needed for a functional sector.
Navigating the Challenges: A Call for Coordination
This transformative journey is not without its early hurdles, which honest supporters of the reform must acknowledge and address.
· Federal-State Regulatory Tensions: As states like Enugu assert their new authority to set tariffs, tensions have arisen with federal bodies and generation companies concerned about revenue shortfalls and existing sector debts . This underscores the need for clear, cooperative frameworks.
· Varying State Capacities: Not all 36 states possess equal financial or technical resources to establish robust regulatory institutions. As noted in a 2024 memo, only three states had fully completed the legislative process initially, risking a patchwork of implementation .
· The Threat of Fragmented Markets: The risk of creating 36 isolated, inefficient mini-markets is real. A disjointed system could deter large-scale investment needed for major generation and transmission projects.
The most promising solution to these challenges lies in regional collaboration. States within the same geopolitical zone or served by the same existing distribution company (DisCo) can pool resources.
· Harmonized Regulations: Creating regional regulatory blocs reduces complexity for investors wanting to build projects that serve multiple states .
· Shared Financial and Technical Resources: Pooling resources makes the enormous task of market design and regulation more affordable for individual states .
· Efficient Resource Use: A state rich in hydro or gas can supply neighboring states, ensuring the most efficient and cost-effective use of national resources .
A Future Powered by Possibility
Looking ahead, the full promise of the Electricity Act is a Nigeria where power supply is not a punchline but a pillar of prosperity.
· Imagine a Lagos where industrial clusters run on dedicated, reliable grids, fueling manufacturing jobs.
· Picture a Kano where solar-powered mini-grids bring stable electricity to bustling markets and homes.
· Envision a Niger Delta community using associated gas, once flared, to power local industries and create wealth.
This is the future President Tinubu’s policy makes conceivable. It moves the nation from a culture of helpless dependency to one of energized self-reliance. The journey will require patience, coordination, and sustained political will to overcome inevitable obstacles. However, the alternative; a return to the centralized model of darkness and despair; is simply unthinkable.
The Electricity Act 2023 is more than legislation; it is an act of faith in the Nigerian people. It is a belief that our communities, when given the tools and the authority, can solve their own problems and light their own paths. This is the emotional core of the reform: it replaces a narrative of national failure with one of grassroots hope and unstoppable potential.
