COMMUNIQUÉ: Powering Nigeria’s future from the ground up

Issued at the BusinessDay Energy Conference – June 2025

Theme: “Powering the States: Navigating Nigeria’s Decentralised Electricity Future”

Preamble

The conference was convened to catalyse Nigeria’s decentralisation of electricity governance following the passage of the 2023 Electricity Act. The central thesis of the day was unequivocal: the future of power lies in local control, pragmatic reform, and investor-led innovation. This communiqué presents a unified vision, drawing from policy declarations, technical panel insights, market strategies, and investor expectations.

1. The Urgency of Now: A Systemic Failure Demands Systemic Reform

Nigeria’s centralised electricity model has proven structurally incapable of delivering affordable, reliable, or inclusive power. As Frank Aigbogun, publisher, BusinessDay Media Limited, noted in his opening remarks, Nigeria has remained trapped in regulatory inertia while peer economies have embraced decentralised, diversified energy ecosystems.

Years of tariff instability, underinvestment, opaque licensing, and grid fragility have forced citizens and institutions to self-generate power at enormous economic and environmental cost. The message from participants was resolute: the age of central control is over.

2. Legal Empowerment, Local Execution: The States Take the Lead

The 2023 Electricity Act provides the legal framework, but implementation now rests squarely with subnational actors. Lagos State, through the leadership of Abiodun Ogunleye, commissioner of, Ministry of Energy and Mineral Resources, has emerged as the frontrunner in this new architecture.

Key reforms underway in Lagos include:

Passage of the Lagos Electricity Law (2024) aligns with the new federal law while preserving local autonomy.

Establishment of the Lagos Electricity Regulatory Commission (LERC), an Electrification Agency, and a System Operator.

Design and rollout of the Clean Lagos Electricity Market (CLEM) to encourage private investment, embedded generation, and grid decongestion.

Commitment to 50% feeder stability within 100 days, metering penetration, and AI-integrated energy data platforms.

Ogunleye emphasised, “This is not just about electricity, it’s about dignity, productivity, and economic sovereignty.”

3. Market Confidence: Private Sector Validation and Financing Models

Executives from firms including JMG Ltd., North South Power, Stanbic IBTC, Empower New Energy, and legal powerhouse Olaniwun Ajayi LP reinforced a common truth: decentralisation is not theory, it is bankable, investable, and already in motion.

Key Industry Insights:

Over 1.8 gigawatts (GW) of decentralised energy has been deployed in five years by private actors.

Hybrid financing models are emerging, including long-tenor naira instruments (14+ years), vertical integration (e.g., NSP’s acquisition of Eko Disco), and local capital-led structuring.

Investors require clarity, predictability, enforceable contracts, and fair regulatory enforcement, not subsidies.

Solar energy, while underutilised (<1% of the national mix), offers the cheapest, quickest path to clean power and rural access.

As Rabi Jamal, group general manager, JMG Nigeria, put it: “Execution, political will, and accountability must match our ambition. The market is ready.”

4. Structural and Legal Integrity: Avoiding Regulatory Anarchy

The risk of overlapping jurisdictions was a central theme in the panel session “State vs. Federal Roles in Nigeria’s Electricity Market.”

Consensus Takeaways:

Nigerian Electricity Regulatory Commission (NERC) retains oversight of interstate transmission and grid-connected generation; states must focus on distribution and embedded systems.

Avoid “copy-paste” legislation. Laws must be tailored to local market conditions, resource availability, and technical capacity.

States must not create parallel agencies (e.g., a second NEMSA or SON). National standards ensure system stability.

Proposals like an interstate licence regime could clarify project boundaries and avoid double regulation.

Chinenye Ajayi, deputy managing partner. Olaniwun Ajayi LP framed it succinctly:
“Electricity flows in the path of least resistance. So does investment. Legal certainty must match physical infrastructure.”

5. Rewiring the Market: Recommendations for State, Federal, and Investor Action

For States:

Focus on distribution, embedded generation, and mini-grids, low-hanging fruits with tangible impact.

Build fit-for-purpose legal frameworks, don’t mimic Abuja.

Invest in technical, legal, and commercial capacity within regulatory agencies.

Establish Joint Execution Committees to align public-private efforts and avoid project bottlenecks.

Offer partial guarantees, not handouts, to de-risk early investments.

For the Federal Government:

Provide jurisdictional clarity and avoid regulatory overlap.

Clear legacy sector debts to stabilise the sector’s balance sheet.

Coordinate national transmission planning and interconnection frameworks.

Lead on standardisation, dispute resolution, and investor protection.

For the Private Sector:

Prioritise bankable, commercially viable state projects with clear political support.

Co-invest in solar, hybrid, and mini-grid solutions with shorter deployment timelines.

Engage local development finance institutions (DFIs) and pension funds; draw in international capital after early risk absorption.

Collaborate with state regulators on data transparency, tariff models, and customer engagement.

6. Final Reflections: Lighting a Nation Through Courage and Collaboration

The conference closed with a rousing call to action. Speakers agreed: the reforms Nigeria seeks will not be delivered by Abuja alone. The path to power is now local.

Edu Okeke, MD, Azura Power West Africa, captured the spirit:
“We don’t need more energy laws. We need more energy. Let’s go deliver it.”

Post-Conference Action Points

States are to build institutional readiness through capacity partnerships and regulatory training.

Development partners to recalibrate support, engaging directly with subnationals, not just federal agencies.

BusinessDay to convene a follow-up forum focused on renewables, financing innovation, and state-level case studies by Q4 2025.

Stakeholders to commit to implementation, not just policy, to ensure that “electricity for all” becomes more than a promise.

Closing Declaration

Let it be known that at this historic juncture, stakeholders from across Nigeria’s energy ecosystem affirmed:

“We will not manage darkness. We will build light, state by state, solution by solution, until energy becomes a right enjoyed by all Nigerians, not a privilege hoarded by the few.”