Nigeria’s electricity reform is entering a decisive phase, with the Federal Government moving to strengthen cooperation between federal and state authorities as responsibility for regulating power markets becomes increasingly decentralised.

The Federal Government has inaugurated a Harmonisation Committee to improve collaboration between federal institutions and sub-national governments in the electricity supply industry.

The committee is expected to address regulatory coordination, investment promotion and the delivery of more reliable power to consumers.

The initiative comes as states increasingly take on greater roles in overseeing electricity markets within their jurisdictions.

While decentralisation offers opportunities for states to respond more directly to local power needs, it also raises questions about how federal and state regulators will work together without creating conflicting rules or duplicating functions.

Minister of Power, Joseph Tegbe, said the success of the reforms would depend on stronger cooperation between both tiers of government. He identified investment and reliable electricity supply as two critical priorities for the committee.

According to the minister, the committee will also focus on building the capacity of State Electricity Regulatory Commissions to enable them to effectively supervise electricity markets under their control.

For investors, clearer coordination between federal and state authorities could reduce uncertainty and make the sector more attractive.

The committee’s work forms part of the Federal Government’s broader effort to deepen electricity reforms and reposition the sector for sustainable growth.

However, stakeholders say the real measure of success will not be the creation of another committee, but whether it can turn coordination into practical results: clear regulations, increased private investment and visible improvements in electricity supply across homes, businesses and public institutions.