Following the enactment of the Electricity Act 2023, Lagos, Kano, and 10 other states are gearing up to initiate power generation within their jurisdictions.
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The move comes as part of efforts to conform with the provisions of the new law, which empowers states to generate, transmit, and distribute electricity independently. Several of these states have already established their electricity market laws and are awaiting approval from the Nigerian Electricity Regulatory Commission (NERC) to establish independent regulatory bodies.
Tariff Hike Draws Condemnation Amid State Power Generation Plans
The recent 240% tariff hike in electricity prices, particularly affecting consumers in Band A enjoying 20-hour electricity, has sparked widespread condemnation from various groups. Organizations including the Petroleum and Natural Gas Senior Staff Associations of Nigeria, civil society organizations, and the Nigeria Electricity Consumer Advocacy Network have criticized the hike, warning of its adverse impact on Nigerians.
**States Seize Opportunity to Establish Electricity Firms**
With the implementation of the new Electricity Act, many states are seizing the opportunity to establish their electricity generation companies. Since President Bola Tinubu signed the act into law in June 2023, states have been actively working to create frameworks for power generation, transmission, and distribution within their borders. The move is seen as a significant step towards addressing the longstanding electricity challenges faced by the nation.
**State Governments Forge Partnerships for Energy Projects**
State governments are forging partnerships and collaborations to facilitate the rapid development of energy projects. In Nasarawa State, a partnership with the Nigeria Off-Grid Market Acceleration Programme aims to enhance the state’s power and sustainability agenda. Similarly, Kebbi State is preparing for solar power generation in collaboration with Fadel International Holding Group, demonstrating a concerted effort to improve electricity supply.
**Outcry Over Tariff Hike Signals Potential Industrial Unrest**
The recent tariff hike has sparked outrage among labor unions and advocacy groups, signaling potential industrial unrest. Organizations like the Trade Union Congress (TUC) have condemned the hike, citing its detrimental effects on consumers. Critics argue that the hike, coupled with the lack of improvement in electricity supply, exacerbates the challenges faced by Nigerians and raises questions about the government’s commitment to serving the people.
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