Shettima Challenges States To Break Free From Abuja’s Power Grip

Amarachi Ihesiulo

October 22, 2026
3 min read
Vice President Kashim Shettima

Vice President Kashim Shettima has challenged state governments to reduce their dependence on the Federal Government for electricity supply by establishing functional electricity markets and attracting private investment under the Electricity Act 2023.

Shettima said states must take greater responsibility for developing local power solutions capable of improving electricity access for households, businesses and industries.

He emphasised the importance of state-level participation in the electricity sector, arguing that subnational governments have opportunities to design systems that respond to their economic needs and local conditions.

The Electricity Act 2023 provides a framework for states to establish and regulate electricity markets within their jurisdictions, subject to the applicable constitutional and regulatory requirements.

The law represents a significant shift in Nigeria’s electricity governance structure, creating opportunities for states to develop their own electricity markets rather than relying exclusively on the national framework.

Shettima’s position places emphasis on the need for state governments to translate the legal opportunities created by the legislation into practical arrangements that attract investors and improve power supply.

He urged states to develop clear policies, establish effective regulatory institutions and create an environment in which private-sector operators can participate in electricity generation, transmission and distribution.

Reliable electricity remains a major concern for Nigerian households and businesses, many of which depend on alternative sources of power to supplement unreliable public supply.

Manufacturers, small businesses and service providers have frequently identified electricity costs and supply interruptions as significant obstacles to productivity and expansion.

A stronger state-level electricity market could provide opportunities for local generation projects, renewable energy investments, mini-grids and other arrangements tailored to specific communities and commercial centres.

However, developing viable electricity markets requires more than legislative authority. States must also address infrastructure constraints, financing, technical capacity, tariff structures and the financial sustainability of electricity distribution.

Investor confidence will depend on predictable regulations, transparent commercial arrangements and the ability of operators to recover legitimate costs while maintaining affordable services for consumers.

State governments will also need to coordinate with relevant federal institutions and neighbouring jurisdictions where electricity infrastructure or market operations cross state boundaries.

The Federal Government has continued to pursue reforms intended to improve the performance of Nigeria’s electricity sector, but the scale of the challenge requires sustained cooperation among public institutions and private operators.

Shettima’s challenge therefore underscores the importance of moving from policy commitments to measurable improvements in electricity access.

For households and businesses, the ultimate test will be whether the reforms deliver more reliable power, reduce dependence on expensive alternatives and support economic growth.

The success of state electricity markets will depend on the willingness of governments to establish credible institutions, mobilise investment and maintain policies capable of supporting long-term sector development.

Amarachi Ihesiulo

Ihesiulo Grace Amarachi is a Nigerian journalist, writer and media professional serving as the Editor-in-Chief of TheTraffic.NG, a digital news platform covering national and international affairs. Her editorial interests span politics, business, aviation, health, technology, entertainment, sports and social development. She is committed to credible journalism, insightful reporting and compelling storytelling that informs public discourse and keeps readers abreast of important developments in Nigeria, Africa and beyond.