Business
Electricity Act: Adelabu Suspends Regulatory Autonomy Transfer To States
The Minister of Power, Adebayo Adelabu, has announced the suspension of the transfer of Electricity Regulatory Autonomy to State Governments.
He said the suspension was imperative to give governments and stakeholders in the power sector ample time to properly understand what is required to operate an electricity market.
The Minister disclosed this while speaking at the 8th edition of the Africa Energy Market Place (AEMP) Conference in Abuja, at the Weekend.
Noting the peculiarities in each zone, Adelabu said the transfer of regulatory oversight will be piloted in selected states across the geopolitical zones in the country.
In his words, “the hydroelectric power plants that we have today are highly concentrated in the North Central, with its own environmental peculiarities. The South-South, South East and some parts of the West have concentration of thermal or gas power plants with pipeline issues, right of way, environmental and all that.
“When we have each of these zones represented in the pilot and we allow it to run for three to six months, or up to a year, all the possible issues would have been reflected so that we are going to have a learning curve, and all those issues will be addressed before granting further regulatory autonomy, because I have a feeling that we don’t have a comprehensive understanding of what this autonomy means.
“We all have to sit down and let everybody have a complete understanding of what this regulatory autonomy means. And we will know if we are ready to have full autonomy or it will be a partial autonomy in the meantime before we achieve a matured electricity market”.
Speaking further, the Minister stated that most stakeholders underestimate the capacity required to have regulatory authorities in 36 states, plus the FCT.
He stressed that each state that takes up the regulatory oversight must have a framework and structure to prevent energy theft, vandalism and enough capital for continuous investments and maintenance of infrastructures.
In his remarks, the Chairman, Geometric Power, Bart Nnaji, noted that while the Act has been able to bring regulation closer to the people, there are a lot of challenges that may arise at the implementation stage.
Nnaji explained that many state governments may have difficulties with building adequate capacity to carry out the regulatory functions as required by the Act.
“On the issue of capacity, it is very clear that what the national regulator has done so far would not be easy to just replicate by the states. Now each commissioner has a lot of training that has been done and they have an institution within a particular area and then you have states that are just coming up, it will take a while.
“So, success in terms of capacity for states will be to say, we will face it over time. The first thing you begin to do is hand holding by the national regulator and till eventually you can now stand.
“Now, on the issue of limits, there is a tendency for state governments to believe now that it is possible for them to have the ability to generate, transmit and distribute, that they can do it all. But there are DisCos within the environment, and these DisCos are owned by companies. And so the wires are owned by this Discos.
“So, understanding that they just can’t go to act as if they can suddenly take over the wires would be an issue. So let them understand how to collaborate with the existing companies”, he said.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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