Dike Onwuamaeze 

Experts at the “LCCI Power Conference” has declared that the decentralisationin of the electricity regulation in Nigeria would usher in a new era that is marked by innovation, competition and efficiency in Nigeria’s quest for energy security to power homes and businesses.

The power conference, which took place in Lagos, was organised by the power sector group of the Lagos Chamber of Commerce and Industry (LCCI).

Speaking during the conference, the President of LCCI, Mr. Gabriel Idahosa, said that Nigeria is standing at a defining moment in its energy transition, shaped by constitutional reforms that have opened the door to state-level participation, localized solutions, and a more distributed electricity market. 

Idahosa said: “This moment calls for clarity, strategy, and collective action. The reality before us is clear: while decentralisation introduces new opportunities for innovation, competition, and efficiency, it also exposes long-standing weaknesses in our infrastructure, from generation bottlenecks and limited gas supply to inadequate transmission lines, weak distribution networks, and insufficient investment in off-grid systems.

“These gaps raise critical questions: How do we align new regulatory structures with investor confidence? How do we balance cost-reflective tariffs with affordability? How do we embed renewable energy, deploy technology for smarter systems, strengthen data management, and ensure harmonised regulation across federal and state levels?

“These are not theoretical questions; they are urgent imperatives that sit at the heart of Nigeria’s economic competitiveness and industrial future.”

He said that decentralisation must therefore be accompanied by harmonsed standards, enabling policies, and clear roles for all actors to prevent fragmentation and encourage synergy.

In his remarks as the special guest of honour at conference, the Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, said that the decentralisation of electricity regulation via the Electricity Act has empowered states to drive their own electricity markets.

Ogunleye, who was represented by…, said that deecentralising the sector has introduced new players, new rules, and new responsibilities and urged state governments to build regulatory frameworks that protect consumers, inspire investor confidence, and ensure cost-reflective tariffs that do not discourage industrial activity.

He also emphasised the need for coordination across the value chain. 

“The Nigerian power sector must stop operating in silos. Distribution cannot succeed without improved transmission; generation cannot scale without bankable off-take agreements; and regulation cannot be effective without data transparency and collaborative engagement. 

“This is why partnerships with the private sector, federal stakeholders, and technical agencies remain central to our strategy,” he said.

Ogunleye, however, warned that “no state can build a thriving electricity market in isolation. Industry operators, financiers, policymakers, investors, we all share responsibility for shaping a system that works.

“The power sector must break free from old habits. The reforms we need will not emerge from caution but from courage, courage to innovate, courage to invest, and courage to collaborate.

In his keynote speech during the  conference, the Chief Executive Officer of Lagos State Electricity Regulatory Commission, Dr. Found Animashaun, said that the Nigerian economy has been held captive by a national grid that is often described as fragile, constrained and chronically unreliable.

Animashaun said that the tide could only be turned through decentralisation of power supply and strategic infrastructure optimisation.

According to him, as much as as one-third of all power generated is lost before it reaches the end-user.

He said that this is driven by dilapidated lines and inadequate infrastructure as well as non-metered consumption.

“This reality makes a central grid-only solution both technologically and financially improbable in the short term.  The path forward must, therefore, be one of intelligent fragmentation and diversification,” he said .

Animashaun said that the decentralised electricity regulation offered the private sector the opportunity to”explore and invest in dedicated captive power and decentralised mini-grids for your operations and industrial parks,” adding that”power security is now an internal business function and not just a government provision.”

The Chairman of the Power Group Sector, LCCI, Mr. Olufemi Bakare, said that the conference was timely because of  the dynamic shifts in Nigeria’s energy landscape. 

He said: “The power sector has witnessed significant reforms, and decentralisation  efforts are underway to increase efficiency and private sector participation.  However, these initiatives are not without challenges. Infrastructure optimisation remains a pressing concern, and we must collectively address the obstacles that hinder progress.”