Unbundling power: A catalyst for state competitiveness in Nigeria, By Kabiru Adisa

In a significant move towards decentralization, the Ministry of Power in Nigeria is set to unbundle regional distribution companies, placing the responsibility of electricity provision firmly in the hands of individual states. This paradigm shift not only marks a departure from the traditional centralized approach but also heralds a new era of accountability and healthy competition among the federating units.

Empowered Citizens:

With this restructuring, citizens find themselves at the forefront of change. No longer passive recipients of power, they are empowered to demand accountability from their leaders. The prospect of 24-hour electricity in one state becomes a benchmark, and citizens in other states are now armed with the right to question their leaders on why they cannot replicate such efficiency.

State Competitiveness:

Take, for example, the scenario in Ekut State, where the commitment to providing uninterrupted electricity becomes a standard of excellence. In this case, Osun and Oyo states are compelled to justify any shortcomings to their citizens. This newfound transparency promotes healthy competitiveness, creating a race among states to deliver the best services to their residents.

Accountability in Action:

The unbundling of regional distribution companies not only places the power sector in the hands of the states but also instills a sense of responsibility. States are now not only competing for economic growth but also for the satisfaction of their citizens. This shift is a powerful incentive for efficient governance, as leaders are held accountable for their decisions and actions in the realm of power provision.

Promoting Innovation:

The move towards state-centric power management encourages innovation and tailored solutions. Each state is unique in its resources, demographics, and challenges. Consequently, leaders are incentivised to find creative ways to address the specific needs of their constituents, leading to the emergence of diverse approaches to energy provision.

Challenges and Collaborations:

While competition is a driving force, collaboration among states remains crucial. Challenges in the power sector are multifaceted, and sharing best practices, technological advancements, and experiences can accelerate progress. States can form alliances to collectively overcome hurdles, fostering a cooperative spirit alongside healthy competition.

The unbundling of regional distribution companies in Nigeria signifies a transformative shift, putting states in the driver’s seat of power provision. This move not only empowers citizens to question their leaders but also sparks healthy competition among states. As the federating units strive for excellence in delivering electricity services, Nigeria stands at the brink of a new era where innovation, accountability, and cooperation pave the way for a brighter and more electrified future.

-Adisa is President General Guildance Community Development Foundation