- The Minister of Power, Adebayo Adelabu, announced that ten states, including Oyo, have joined the electricity market following the enactment of the 2023 Electricity Act.
- At the 2nd Annual Socio-economic Summit in Ibadan, Adelabu highlighted the federal government’s efforts to decentralise the power sector and ensure greater energy security and sustainability.
To resolve the persistent power challenges across the country, the Minister of Power, Adebayo Adelabu, revealed that at least ten states have joined the electricity market. This development follows the enactment of the 2023 Electricity Act, which was signed into law by President Bola Tinubu. Adelabu made this announcement during his remarks at the 2nd Annual Socio-economic Summit organised by the Jericho Businessmen Club in Ibadan, Oyo State. He described the move as a significant shift in Nigeria’s regulation and management of electricity.
The “Powering Oyo State for Industrialisation and Economic Development” summit took place at the Ibadan Civic Centre, Agodi. Adelabu highlighted the federal government’s ongoing efforts to improve the power sector and address bottlenecks throughout the electricity supply industry as the special guest of honour. He emphasised the need for the sector to become bankable and sustainable in the long term.
The minister also discussed how the government is exploring alternative power generation sources to reduce reliance on hydropower. He outlined several expectations for state governments to maximise the benefits of a decentralised electricity market. These include ensuring the security of power assets, establishing special courts for the speedy trial of vandals, providing land for power infrastructure such as substations and solar plants, eliminating land use charges on transmission substations, and investing in renewable energy projects, among other measures.
Adelabu further explained that the federal government is actively developing infrastructure to make electricity accessible to all Nigerians. He mentioned two key initiatives: the Presidential Power Initiative, which has added 600 MW of wheeling capacity over the past year, and the Presidential Metering Initiative, aimed at supplying 2 million meters by the end of the year to curb estimated billing practices.
While acknowledging the power sector’s challenges, Adelabu expressed the Ministry of Power’s openness to innovative solutions from stakeholders. He emphasised the importance of platforms like the summit to enhance industrial capacity and economic development at national and subnational levels.
The minister also underscored the government’s focus on boosting local content, creating jobs, and reducing Nigeria’s reliance on imports. By strengthening the domestic capabilities across the power sector, the government aims to promote sustainable economic growth while enhancing the sector’s long-term viability.
According to Adelabu, one of the ministry’s significant achievements over the past year was the passage of the 2023 Electricity Act, a groundbreaking piece of legislation that shifts how electricity is regulated and managed in Nigeria. For the first time, state governments have been granted the power to establish and manage their electricity markets. As a result, ten states, including Oyo, are advancing their state electricity markets, fostering a more decentralised, responsive, and competitive electricity supply industry.
Oyo State’s Commissioner for Energy, Gbenga Ashamu, noted that the state has the potential to become an industrial and innovation hub if the challenges surrounding stable power supply are addressed. Meanwhile, Taofeek Adegoke, President of the Jericho Businessmen Club and summit convener, stressed that tackling energy poverty is critical to achieving stability in the power sector. He called for actionable solutions that could mobilise resources for sustainable energy development in Oyo State.