Nigeria’s effort to decentralise its electricity market is struggling to attract investment, as concerns over payment security, creditworthiness, and regulatory uncertainty persist. While 16 states have secured legal autonomy under the Electricity Act 2023, only seven have fully assumed regulatory control. Analysts note that state-level markets lack the robust payment assurance and scale seen at the federal level. Experts suggest that to unlock funding, states must improve financial transparency and consider regional pooling to increase their commercial viability.