Politically speaking, the plan by the Enugu state government to generate 690MW electricity and at least 20-hour per day power supply by 2030 is a welcome and positive development and is in line with the Fifth Alteration Bill No.33, Devolution of Powers (National Grid System) that moved the issue of power generation, transmission and distribution from the exclusive to the concurrent list.

According to the Enugu state government, enacting the Enugu State Electricity Law is to take immediate advantage of the 2023 constitution amendment and the Electricity Act 2023 to set-up a viable Enugu electricity market and reliable energy supply in tandem with its economic growth and investment plan to make the state a leading industrial hub.

While signing the law, Governor Peter Mbah noted that “you cannot talk about industry or private sector investment if you don’t have electricity or power.” He went further to say that “Enugu under our administration, is designed and indeed prepared to be the premier destination for investment and this law is part of the enablers.” The Governor emphasized that his administration’s ambition to boost Enugu’s economy and help grow the state’s GDP from $4.4 billion to $30 billion is dependent on achieving a consistent and reliable power supply.

By this move, Enugu joins states like Lagos, Edo, and Kaduna that have already enacted electricity market laws and can start regulation of their electricity markets.

The good thing about this development is that Enugu, like most states in Nigeria, have abundant sources of electricity generation from its abundant coal deposit, solar, gas, hydro, biomass and other reliable sources. Additionally, states can partner with the federal government and DISCOS to jointly use existing electricity infrastructure while developing fresh areas of investment.

Since the signing of the amendment that migrated the issue of electricity generation, transmission and distribution from the exclusive to the concurrent list, it is worthy to note that only a few number of states have taken advantage to enact their own law to establish their electricity market and this is not encouraging.

Given the low electricity generation level in Nigeria, there is the urgent need to draw investible funds into the sector to enhance efficiency and increase the available generation capacity of the country.

In order to stimulate their local economy, grow their GDP and improve the quality of life of their citizens, states should be in a hurry to have their own electricity markets so as to attract private sector players and necessary investment into the sector.