Local governments to join Nigeria’s electricity market as reforms deepen decentralization

The Federal Government of Nigeria announced that local governments may soon participate in the country's electricity market, as ongoing reforms aim to deepen decentralization in the power sector. The Minister of Power, Adebayo Adelabu, stated that the evolving electricity framework will increasingly open opportunities for grassroots involvement, particularly in rural electrification, mini-grid deployment, and last-mile distribution. This move follows amendments to the Electricity Act 2023, which decentralized the power sector by granting states the authority to generate, transmit, and distribute electricity within their jurisdictions. The minister also revealed plans to procure up to 10 million electricity meters over the next five years to address a national metering deficit of over seven million, emphasizing the need for local production to reduce dependence on imports. Adelabu lamented that about 90 percent of power equipment is currently imported, increasing costs and foreign exchange pressure. He highlighted opportunities in renewable energy, noting Nigeria's lithium reserves could support local battery production. These reforms are part of broader efforts to upgrade infrastructure, restructure tariffs, and strengthen institutions, with over 70 percent of generation companies now privately owned and all 11 distribution companies largely controlled by private investors. The Minister made these remarks during the inauguration of the board of the Nigeria Electricity Managem