The Executive Director of PowerUp Nigeria, Adetayo Adegbemle, has faulted the Federal Ministry of Power for what he described as a lack of proactive leadership and failure to provide clear policy direction in the implementation of the Electricity Act 2023, warning that recent developments in the sector reflect deeper systemic weaknesses.
Reacting to the controversy surrounding the recent tariff order issued by the Enugu Electricity Regulatory Commission (EERC), which failed to consider wholesale pricing to the national grid, Adegbemle said such regulatory lapses are a direct consequence of leadership failure, particularly on the part of the Ministry, which ought to be coordinating and guiding the reform process across all levels of government.
Adegbemle’s comments come amid growing concerns over market misalignment, unclear pricing mechanisms, and the absence of a unified policy roadmap following the devolution of electricity regulatory responsibilities under the Electricity Act 2023.
Stakeholders have also warned that unless the Federal Government provides strategic direction, the decentralised regulatory regime may deepen inefficiencies and create friction within the market.
“The recent brouhaha with EERC boldly issuing a tariff order without considering payment of the wholesale price to the grid is a result of leadership failure, especially from the Ministry of Power, which should be setting policy direction and activating the Electricity Act 2023,” he said.
Adegbemle emphasised that the issue of wholesale pricing between grid operators and newly empowered state regulators is a critical matter that should have been thoroughly addressed in the National Integrated Energy Policy Plan, but was conspicuously absent.
“There is a need for everyone with a vested interest in the power sector to call out the Ministry for its lack of proactive leadership. Without this, we will continue to witness disjointed regulatory actions and conflicting interpretations of the law,” he said.
He argued that Nigeria missed an opportunity to phase out electricity subsidies in a structured and deliberate manner before granting full regulatory autonomy to the states. According to him, the failure to activate the Power Consumer Assistance Fund (PCAF), a statutory buffer designed to protect low-income customers in a non-subsidised market, undermines the reform agenda and burdens the market with distortionary practices.
“If there’s anyone who has consistently spoken about the need to activate the Power Consumer Assistance Fund and the complete removal of subsidies, I am probably the only one,” he said, reiterating that such measures would have better positioned the Federal Government to manage the transition to state-led electricity regulation under the new law.
While acknowledging that his long-standing position on subsidy removal may have been unpopular, Adegbemle said recent developments have vindicated his stance.
“Many people did not understand that position, but recent events have shown that it would have been a wise move by the Federal Government before even allowing state regulators autonomy,” he added.
Echoing similar concerns, an electricity market analyst, Lanre Elatuyi, faulted the Ministry of Power for failing to guide the implementation of the Electricity Act 2023, particularly given the increasing assertion of regulatory autonomy by states.
“They are not playing any meaningful role; in fact, if they are doing anything at all, I am not even aware of it,” he said bluntly.
Elatuyi warned that allowing state regulators to issue independent tariff orders without a coordinated framework for bulk power pricing would worsen the already fragile liquidity position of the electricity market.
“The consequence of this is that the Federal Government is expected to cover the tariff shortfall in the form of a subsidy. But with limited provision for subsidies and the fact that appropriated subsidies are not being cash-backed, we will be exacerbating the liquidity crisis in the market—and GenCos will bear the brunt,” he explained.
He said the looming financial strain could result in generation companies being unable to meet their obligations or sustain capacity investments, further undermining grid reliability and the consistency of electricity supply.
Their warnings come at a time when industry stakeholders continue to raise concerns over the fragmented pace of reform and the lack of market-aligned regulatory coordination between federal and state actors.
They, however, stressed that the full implementation of the Electricity Act must be accompanied by bold policy activation, clear transitional roadmaps, and mechanisms that protect vulnerable consumers while ensuring long-term market sustainability.
