Local Governments to Join Nigeria's Electricity Market Soon

On Wednesday, October 25, 2023, in Abuja, Adebayo Adelabu, the Minister of Power, disclosed that local governments in Nigeria will soon join the electricity market as part of efforts to reform and decentralize the power sector. This initiative is aligned with the objectives of President Bola Tinubu's administration to expand electricity access and strengthen governance across the power value chain.

The recent amendment to the Electricity Act 2023 allows states to generate, transmit, and distribute electricity within their jurisdictions. Adelabu emphasized that local governments will play a complementary role, particularly in rural electrification and mini-grid deployment, to help close Nigeria's longstanding electricity access gap.

He also announced an ambitious plan to procure 10 million electricity meters over the next five years to address a nationwide shortfall of seven million meters. Adelabu highlighted the need for local manufacturing of power sector equipment to reduce dependence on imports, which currently account for 90% of the sector's components.