The Federal Government has disclosed plans to expand participation in Nigeria’s electricity market to include local government councils, in a move aimed at deepening decentralisation and improving power access nationwide.
The Minister of Power, Adebayo Adelabu, made the disclosure on Wednesday in Abuja during the inauguration of the board of the Nigeria Electricity Management Services Agency.
Adelabu said the initiative forms part of ongoing reforms under the administration of President Bola Tinubu to strengthen the electricity value chain and extend opportunities to grassroots levels.
According to him, as reforms in the sector continue to evolve, local governments are expected to play active roles, particularly in rural electrification, mini-grid development, and last-mile power distribution.
“Very soon, as we deepen decentralisation, local governments will begin to show interest in participating in the electricity market,” the minister said.
He explained that the development follows the implementation of the Electricity Act 2023, which empowers subnational governments to generate, transmit, and distribute electricity within their jurisdictions.
The minister noted that no fewer than 17 states have already begun establishing regulatory frameworks and electricity markets to attract investment and improve supply, adding that extending participation to local councils would further close Nigeria’s electricity access gap.
Adelabu said increased grassroots involvement would reduce pressure on the national grid while promoting a more inclusive and reliable power system.
In addition, he announced plans by the government to procure no fewer than 10 million electricity meters over the next five years to address the country’s metering deficit, estimated at over seven million units.
He stressed the importance of local manufacturing, urging stakeholders to reduce dependence on imported power equipment, which currently accounts for about 90 per cent of components used in the sector.
“Local production of meters, batteries, and other components will not only create jobs but also reduce pressure on foreign exchange,” he said.
The minister also highlighted Nigeria’s potential in renewable energy, particularly in leveraging its lithium resources for battery production and clean energy solutions.
Speaking on infrastructure, Adelabu noted that much of Nigeria’s power facilities are over six decades old and require urgent rehabilitation across generation, transmission, and distribution networks.
He charged the newly inaugurated NEMSA board to enforce strict compliance with technical standards and eliminate substandard electrical materials in the market, warning that poor enforcement contributes to system failures and safety risks.
Responding, the board chairman pledged collaboration with stakeholders to ensure effective regulation and improved service delivery in the sector.
The Source reports that the latest move underscores the government’s commitment to restructuring the power sector through decentralisation, private sector participation, and institutional strengthening.
Analysts say that integrating local governments into the electricity market could accelerate rural electrification and enhance energy access if effectively implemented.
