Energy expert, Nick Agule, has described the federal government’s move to involve local governments in Nigeria’s electricity market as a significant development rooted in recent constitutional reforms that opened up the power sector to wider participation.
Speaking in an interview with ARISE News on Thursday, Agule explained that the Electricity Act marked a turning point in Nigeria’s power sector by decentralising control.
According to him, “Electricity was taken from the exclusive list on the Constitution and placed in the concurrent list.”
He noted that this shift has fundamentally changed the structure of the electricity market, allowing not only the federal government but also states, local governments, and private investors to participate across generation, transmission, and distribution.
Agule stressed that this reform was essential to improving Nigeria’s weak power supply, which he linked directly to broader economic challenges.
He argued that inadequate electricity generation remains one of the biggest constraints on Nigeria’s productivity and development.
“We are putting 5,000 megawatts for more than 200 million people.”
He compared Nigeria’s situation with other countries, using the United Arab Emirates as an example of how power availability drives economic output and national prosperity.
Agule explained that the electricity deficit contributes to unemployment, inflation, exchange rate instability, and insecurity, due to limited economic productivity and job creation.
He further stated that expanding access to reliable electricity would significantly improve economic stability and reduce social pressures.
However, he warned that local governments must focus on enabling private sector participation rather than directly managing electricity projects.
Agule also expressed concern about governance risks, noting that government involvement in business enterprises has historically produced inefficiencies.
He concluded that the most sustainable path forward is a private-sector-led electricity market supported by strong regulation and an enabling environment created by local governments.
By Ojo Triumph
Follow us on:
