TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Electricity Act: What are states waiting for? – Punch

The Editor by The Editor
April 29 2026
in Public Affairs
A A
0
Blackouts: Broken promises, powering failure – Punch

Nearly three years after the Electricity Act 2023 dismantled the legal monopoly that once concentrated authority in Abuja, many states are still dithering.

This hesitation is costly. It prolongs a failed centralised model dominated by underperforming GenCos and DisCos, while businesses and households remain trapped in darkness or forced to rely on expensive generators.

The facts are distressing. Nigeria generates barely 4,000–5,000MW for over 230 million people, against an estimated demand of 40,000MW. There has been no improvement in this sorry state since 1999.

The result is an “invisible shadow grid,” where over 70 per cent of firms self-generate power. Dangote Industries alone generates 1,500MW of the estimated 25,000MW privately generated.

The Manufacturers Association of Nigeria has repeatedly lamented that industrial concerns now spend over 40 per cent of operating costs on energy, eroding competitiveness, shrinking margins, and forcing many to shut down. Small businesses fare even worse, throttled by erratic supply and high fuel costs. No serious industrial economy runs this way.

The Electricity Act has the potential to break this cycle. Empowering states to regulate generation, transmission, and distribution within their jurisdictions, it introduces competition, local accountability, and investment flexibility.

Yet only a fraction of states have embraced this opportunity. The laggards are Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe and Zamfara.

They are effectively choosing to remain hostages to a broken system.

This is baffling because the evidence of what works is already visible. The $800 million 141 MW Geometric Power Aba project offers a compelling blueprint. Supported by the African Export-Import Bank, the integrated Aba power model combines generation and distribution within a defined industrial cluster.

Even at partial capacity, it supplies uninterrupted electricity to tens of thousands of users and is projected to cut outage costs by $1.3 billion annually.

AFREXIM projects that Geometric will power over 25,000 SMEs and deliver up to 300,000 indirect jobs, new industries, and fiscal surpluses. This illustrates the fact that reliable power transforms economies.

Critically, Aba also demonstrates that Nigerians are willing to pay for reliable electricity. This is the central fallacy of current tariff debates. Consumers do not resist pricing per se, but exploitation via high tariffs for poor service.

The intervention by the Enugu State Electricity Regulatory Commission underscores this point.

By adopting a transparent, data-driven pricing model, Enugu reduced tariffs (especially the dubious Band A variant) to N160 per kWh, down nearly 23 per cent from the federal average of N208 per kWh, while maintaining cost reflectivity.

Decentralisation allows states to replicate such models and tailor tariffs to local realities, enforcing service standards and protecting consumers. It also opens the door to embedded generation, mini-grids, and renewable energy solutions that bypass the inefficiencies of the national grid.

As the former Power Minister Adebayo Adelabu rightly noted, a country as vast as Nigeria cannot be powered from a single command centre.

Yet gas remains a major constraint. Nigeria’s thermal plants depend heavily on gas feeds, but supply remains erratic due to inadequate pipeline infrastructure and weak commercial frameworks.

The Aba project itself operates well below capacity because gas deliveries fall short by up to 80 per cent at times.

This raises a critical question about why the Federal Government has been so slow to expand domestic gas pipelines despite abundant reserves. Without a reliable gas supply, private investment in power will continue to underperform.

States must therefore think beyond conventional generation. Diversification to solar, wind, and small hydro projects can complement gas-fired plants, especially in off-grid and rural areas.

Mini-grids and standalone systems can electrify communities faster and cheaper than extending the national grid.

Here, Nigeria’s universities and research institutions have been conspicuously absent. In a country battling chronic energy poverty, the lack of homegrown innovation in storage, grid management, and renewable integration is indefensible.

The broader point is that the era of excuses is over. The legal framework exists. The economic case is overwhelming. The technology is available. What are the states waiting for?

Every day of delay entrenches inefficiency, fuels inflation, and drives businesses out of Nigeria. Conversely, every state that takes control of its electricity market moves closer to economic autonomy and industrial revival.

The success of Aba should not remain an isolated experiment; it should become a national template.

States can do better than pumping billions into airports that are barely used or flyovers where none are needed.

If states are serious about growth, jobs, and competitiveness, they must seize the powers already granted to them, decisively and without delay.

Previous Post

PSG edge Bayern in nine-goal Champions League semi-final epic

Next Post

UN raises concern over renewed xenophobic attacks in South Africa

Related Posts

Clerics must preach peace, not division – Punch
Public Affairs

Clerics must preach peace, not division – Punch

August 25 2026
Tax reform: Northern senators in closed-door meeting as bill scales second reading
Public Affairs

Tax reform must end multiple taxation – Punch

August 24 2026
BREAKING: Kidnapped Oyo pupils, teachers regain freedom
Public Affairs

Terror victims deserve care – Punch

August 21 2026
Unfilled tertiary education spaces debacle – Punch
Public Affairs

Unfilled tertiary education spaces debacle – Punch

August 20 2026
Reps in rowdy session over motion to summon Tinubu
Public Affairs

Accounting for recovered assets – Punch

August 18 2026
Stop recruiting youths for election violence – Punch
Public Affairs

Stop recruiting youths for election violence – Punch

August 12 2026
Next Post
UN raises concern over renewed xenophobic attacks in South Africa

UN raises concern over renewed xenophobic attacks in South Africa

2027 Polls: Court bars INEC from recognising ADC congresses

2027 Polls: Court bars INEC from recognising ADC congresses

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Awujale: Ruling House sues Ogun, kingmakers

Awujale: Ruling House sues Ogun, kingmakers

by The Editor
August 25 2026
0

...

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

by The Editor
August 24 2026
0

...

Adeleke chairmen seize Osun LG secretariats

Adeleke chairmen seize Osun LG secretariats

by The Editor
August 18 2026
0

...

APM sweeps Bauchi LG poll, wins all 20 chairmanship seats

APM sweeps Bauchi LG poll, wins all 20 chairmanship seats

by The Editor
August 18 2026
0

...

APPOINTMENTS

Tinubu names new Head of Service

Tinubu names new Head of Service

by The Editor
August 19 2026
0

...

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

by The Editor
August 8 2026
0

...

Police IG deploys new CPs to eight states, other formations

Police IG deploys new CPs to eight states, other formations

by The Editor
August 7 2026
0

...

Katsina governor swears in four permanent secretaries

Katsina governor swears in four permanent secretaries

by The Editor
August 6 2026
0

...

ODDITIES

Scavengers strip Lagos bridges, homes in widespread theft

Scavengers strip Lagos bridges, homes in widespread theft

by The Editor
August 25 2026
0

Man sets mother on fire in Cross River over witchcraft accusation

Man sets mother on fire in Cross River over witchcraft accusation

by The Editor
August 20 2026
0

Celestial Church begins probe into Temitope Osoba’s death

Celestial Church begins probe into Temitope Osoba’s death

by The Editor
August 13 2026
0

GLOBAL NEWS

US cuts visa processing centres in Africa

US plans mass visa revocation for asylum seeker

by The Editor
August 25 2026
0

...

US removes Syria from state sponsor of terrorism list

US removes Syria from state sponsor of terrorism list

by The Editor
August 24 2026
0

...

Trump to double tariffs on Canada autos as trade fight heats up

Trump to double tariffs on Canada autos as trade fight heats up

by The Editor
August 24 2026
0

...

London names bus stop after Nigerian content creator ‘Bus Aunty’

London names bus stop after Nigerian content creator ‘Bus Aunty’

by The Editor
August 22 2026
0

...

UK warns citizens against travel to 28 Nigerian states over terrorism, kidnap risk

UK warns citizens against travel to 28 Nigerian states over terrorism, kidnap risk

by The Editor
August 21 2026
0

...

State of the States

Abia traditional rulers endorse Gov. Otti for second term

Abia State begins payment of N61.8bn gratuity arrears

by The Editor
August 25 2026
0

...

Kaduna State approves N300m for KASU lecturers

Kaduna State approves N300m for KASU lecturers

by The Editor
August 24 2026
0

...

Cross River governor assures SPAR fire victims of govt support, promises immediate intervention

Cross River governor assures SPAR fire victims of govt support, promises immediate intervention

by The Editor
August 24 2026
0

...

Gov. Otu bows to pressure, orders release of detained critic Odama

Gov. Otu bows to pressure, orders release of detained critic Odama

by The Editor
August 20 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
NNPC, partners advance $21bn Bonga offshore project

NNPC, partners advance $21bn Bonga offshore project

August 25 2026
FG eyes unclaimed dividends, dormant funds for NELFUND

FG eyes unclaimed dividends, dormant funds for NELFUND

August 25 2026
30 die in terrorists’ attacks on four Niger State mosques

30 die in terrorists’ attacks on four Niger State mosques

August 25 2026
Abia traditional rulers endorse Gov. Otti for second term

Abia State begins payment of N61.8bn gratuity arrears

August 25 2026

EDITORIAL REVIEW

Clerics must preach peace, not division – Punch

Clerics must preach peace, not division – Punch

by The Editor
August 25 2026
0

Tax reform: Northern senators in closed-door meeting as bill scales second reading

Tax reform must end multiple taxation – Punch

by The Editor
August 24 2026
0

BREAKING: Kidnapped Oyo pupils, teachers regain freedom

Terror victims deserve care – Punch

by The Editor
August 21 2026
0

Unfilled tertiary education spaces debacle – Punch

Unfilled tertiary education spaces debacle – Punch

by The Editor
August 20 2026
0

Reps in rowdy session over motion to summon Tinubu

Accounting for recovered assets – Punch

by The Editor
August 18 2026
0

Opinion

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Fake agencies: Why Nigeria still needs Oronsaye report

by The Editor
August 25 2026
0

...

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Adeleke’s win and the cost of winning at all costs

Adeleke’s win and the cost of winning at all costs

by The Editor
August 18 2026
0

...

Airtime credit dispute and need for clarity

Airtime credit dispute and need for clarity

by The Editor
August 5 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.