Application of Electricity Federalism in Nigeria: Drawing Inspiration from America

Abstract

This paper examines the theory and practice of electricity federalism in the Nigerian federation. Although Nigeria is an American-styled federal entity, its practice does not reflect the true principles of federalism as practiced in America. Nigeria's electricity sector is a reflection of its imperfect practice of federalism. The effect is felt in the poor performance of the electricity sector, especially off-grid undertakings. Thus, this study turns to the practice of electricity federalism in the United State of America as a model federalist system from which Nigeria can draw inspiration towards a better practice of electricity federalism. Evidence from America demonstrates how fiscal federalism led to a robustly developed power sector. It is argued that, although constituent states of Nigeria have the legal capacity, they lack the wherewithal to develop robust off-grid electricity undertaking under the current federalist system. Hence, political restructuring that would ensure fiscal federalism is needful in Nigeria.