States Oppose Senate Move to Amend Electricity Act

 

A fresh dispute has emerged over the control of Nigeria’s electricity sector, with electricity regulators from 16 states opposing the proposed Electricity Act (Amendment) Bill 2026, saying it could reverse powers already devolved to states.

In a memorandum submitted to the Senate Committee on Power, the regulators argued that the amendment seeks to restore extensive federal oversight over electricity matters that are now constitutionally under the jurisdiction of states.

The document, signed by heads of electricity regulatory agencies in states including Lagos, Oyo, Ogun, Enugu, Edo, Ekiti, Ondo, Abia, Anambra, Bayelsa, Gombe, Imo, Kogi, Nasarawa, Niger and Plateau, warned that the bill could undermine the reforms introduced by the Electricity Act 2023.

According to the regulators, they have already begun developing sub-national electricity markets and attracted investors based on the current legal framework.

They identified 17 contentious provisions in the proposed amendment, including issues relating to state legislative powers, federal oversight of state electricity markets, regulation of wholesale electricity transactions, tariff design, consumer protection, and the expanded powers of the Nigerian Electricity Regulatory Commission (NERC).

The regulators argued that the National Assembly cannot, through ordinary legislation, redefine or restrict powers already granted to states by the Constitution.

They described parts of the bill as “a shocking miscomprehension of Nigerian constitutional law,” warning that the proposed changes could weaken federalism and discourage investment in the electricity sector.

The memorandum further stated that allowing NERC to retain overriding authority over activities linked to the national grid would effectively render state regulatory powers meaningless.

The regulators also opposed proposals giving NERC final appellate authority over disputes involving state electricity regulators, insisting that both federal and state regulators operate within separate constitutional jurisdictions.

They urged lawmakers to engage in wider consultations to preserve the decentralisation objectives of the Electricity Act 2023 and avoid disrupting investments already made under the existing framework.

The Electricity Act 2023, enacted following constitutional amendments, empowers states to generate, transmit and distribute electricity within their territories. Several states have since established electricity laws and regulatory commissions as part of ongoing power sector reforms.