Why Governors Should Use the Electricity Act 2023 to Build State Power Markets

Nigeria’s Electricity Act 2023 gives state governments a clearer role in building and regulating electricity markets within their jurisdictions. The law replaced the 2005 reform framework and allows states to establish regulators, support intra-state generation and distribution projects, and attract private investment. As of the second quarter of 2026, 15 states had obtained licences from the Nigerian Electricity Regulatory Commission to regulate their electricity markets. These states can use the opportunity to strengthen consumer protection, encourage mini-grids and power plants, and improve supply for homes and businesses. Governors in states yet to make the transition should treat electricity as a core economic-development priority. Reliable power can support industrialisation, create jobs, expand business activity and increase internally generated revenue. States should not rely solely on improvements to the national grid when the law now provides room for local solutions.

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