The signing of the Electricity Act 2023 (and its subsequent 2024 amendment) by President Bola Ahmed Tinubu marks a historic departure from the centralist shackles that have bound Nigeria’s development for decades. By effectively removing electricity from the “monopoly” of the federal government, the administration has signaled that the long-awaited restructuring of the Nigerian federation is no longer a mere campaign promise—it is actively in motion.
Breaking the Gridlock
For over half a century, the Nigerian state operated under a “command and control” energy model. The federal government held the exclusive right to manage the national grid, leaving states as mere bystanders in the darkness. Under the new legal framework, the “National Grid” is no longer a central bottleneck. States now have the constitutional and statutory authority to:
1.Generate, Transmit, and Distribute: States can now build their own power plants and manage local transmission lines.
2.Establish Independent Markets: Governors can set up State Electricity Regulatory Commissions (SERCs) to manage their unique energy economies.
3.Attract Direct Investment: Private investors no longer need a “Federal nod” to power a local community or industrial hub; they only need a state license.
The Numbers Game: Nigeria vs. The World
The excitement surrounding this “unbundling” stems from a deeper realization about the Nigerian Constitution. Currently, the Exclusive Legislative List—the list of items only the Federal Government can touch—contains a staggering 68 items. These range from major issues like defense and currency to granular matters like fingerprints and marriage.
In contrast, the United States, a fellow federation, operates with a federal government that has only about 15 specifically enumerated powers (Article I, Section 8). The rest are reserved for the states or the people. The disparity is clear: Nigeria’s federal center is “top-heavy,” suffocating the creative and economic potential of its 36 sub-national units.
Setting the Stage for Restructuring
The decentralization of electricity is the first major “domino” to fall. It serves as a pilot for what many Nigerians hope will be the eventual unbundling of other critical items such as Correctional Services (Prisons) and Railways, both of which were also recently moved to the Concurrent List.
This shift is a signal for a “dream come true” for advocates of regional autonomy. When states control their power, they control their industrialization. When they control their industrialization, they create jobs, increase their Internally Generated Revenue (IGR), and reduce the desperate reliance on the monthly “handouts” from the Federation Account (FAAC).
The Road Ahead
While the legal walls have come down, the physical infrastructure remains to be built. States like Oyo, Lagos, and Edo are already leading the charge, but the real victory will be when a local manufacturer in Aba or a farmer in Kano can rely on a state-regulated micro-grid without waiting for “national” stability.
The unbundling of the Exclusive List is not just a legal exercise; it is the liberation of the Nigerian spirit. As we move from 68 items toward a leaner, more efficient federal center, we move closer to a Nigeria that finally works for everyone.
“The era of waiting for the center to hold is over. The states are now the new engines of the Nigerian dream.”
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