Electricity Act – The Trumpet Newspaper Nigeria

A coalition of electricity regulators from 16 states has accused the National Assembly of attempting to roll back key reforms introduced under the Electricity Act, warning that the proposed Electricity Act (Amendment) Bill 2026 could undermine state powers and discourage investments in Nigeria’s evolving power sector.

Key Highlights

• 16 state electricity regulators oppose proposed Electricity Act amendment
• States accuse Senate of attempting to reclaim devolved electricity powers
• Regulators warn bill could weaken state electricity markets
• Concerns raised over expanded powers for the Nigerian Electricity Regulatory Commission (NERC)
• States insist electricity regulation within their territories is constitutionally protected
• Investors may lose confidence if decentralisation reforms are reversed

In a memorandum submitted to the Senate Committee on Power, the regulators argued that the amendment bill seeks to restore federal control over aspects of electricity governance that were already devolved to states under the Constitution and the Electricity Act 2023.

The regulators cautioned that reversing these reforms could destabilise emerging state electricity markets and negatively affect investor confidence, noting that several states have already established regulatory frameworks and attracted investments based on the current legal structure.

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According to the memorandum, states including Lagos, Enugu, Edo, Oyo, Ogun, Abia, Anambra, and others identified several controversial provisions in the bill. These include issues relating to state legislative authority, regulation of electricity activities connected to the national grid, and the role of the Nigerian Electricity Regulatory Commission (NERC) in matters concerning state electricity markets.

The states maintained that electricity regulation within state boundaries falls squarely within their constitutional jurisdiction and argued that the National Assembly cannot alter or limit those powers through ordinary legislation.

They warned that any attempt to expand federal oversight over state electricity operations could derail ongoing reforms, weaken sub-national electricity markets, and create uncertainty for investors seeking to participate in state-driven power projects.

The regulators also rejected proposals that would make NERC the final appellate authority in disputes involving state regulators. They insisted that federal and state electricity regulators operate under distinct constitutional mandates and should remain independent within their respective jurisdictions.

Calling for broader stakeholder engagement, the states urged lawmakers to pursue collaboration rather than centralisation, stressing that the success of Nigeria’s electricity sector depends on cooperation between federal and state authorities.

The debate centres on the Electricity Act 2023, which followed constitutional amendments that removed electricity from the Exclusive Legislative List for intra-state electricity generation, transmission, and distribution. The landmark reform empowered states to develop and regulate their own electricity markets independently.

However, the proposed amendment bill has reignited concerns over the balance of power in Nigeria’s electricity sector, with many stakeholders warning that any attempt to dilute state authority could slow progress toward improved electricity access and energy security.