The regulators said the amendment bill appears to contradict both the spirit and letter of recent constitutional reforms that empowered states to take charge of electricity generation, transmission, and distribution within their territories
kaNo —
A fresh confrontation has emerged in Nigeria’s power sector as electricity regulators from 16 states strongly opposed a proposed amendment to the Electricity Act 2023, warning that it could reverse hard-won gains in decentralising the country’s electricity governance.
In a detailed memorandum submitted to the Senate Committee on Power, the state regulators accused the National Assembly of attempting to reassert federal dominance over electricity matters that have already been constitutionally devolved to the states.
The document, dated May 26, 2026, was addressed to the committee chairman and jointly signed by heads of electricity regulatory commissions and bureaus across participating states.
The signatories, representing Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo and Plateau, warned that the proposed Electricity Act (Amendment) Bill 2026 could significantly undermine the progress made since the enactment of the Electricity Act 2023.
According to the regulators, the amendment bill appears to contradict both the spirit and letter of recent constitutional reforms that empowered states to take charge of electricity generation, transmission, and distribution within their territories.
They argued that instead of strengthening the evolving electricity market, the bill seeks to centralise control once again under federal authorities.
“We represent State Regulatory Commissions and Bureaus that have taken advantage of the Electricity Act 2023 to commence the development of sub-national electricity markets,” the memorandum stated.
“We are grateful for the opportunity to present our concerns regarding the ongoing consideration of the proposed Amendment Bill.”
The regulators disclosed that they had previously engaged with the Senate Committee on Power, which subsequently requested a harmonised submission outlining their concerns.
The resulting memorandum consolidates their objections into a single document for consideration by lawmakers, the Nigerian Electricity Regulatory Commission (NERC), and other stakeholders.
At the heart of the dispute are 17 provisions within the proposed amendment that the states consider contentious. These provisions, they argued, have the potential to erode the legislative and regulatory autonomy granted to states under the current legal framework.
Among the key areas of disagreement is the provision relating to the authority of State Houses of Assembly to legislate on electricity matters.
They described this interpretation as fundamentally flawed, warning that any attempt by the federal legislature to grant or restrict these powers through ordinary legislation would constitute a constitutional violation.
“Section 2 of the Bill seeks to amend the Principal Act in a manner that suggests the National Assembly can delegate legislative powers to states,” the memorandum stated.
“This is based on a misinterpretation of constitutional law, as the powers of state legislatures are derived directly from the Constitution, not from federal statutes.”
The regulators further raised concerns over provisions seeking to maintain federal oversight of activities connected to the national grid, even when such activities occur within state jurisdictions.
Other contentious clauses include restrictions on states’ participation in the wholesale electricity market, limitations on their authority over independent transmission and distribution networks, and provisions governing the Nigerian Wholesale Electricity Market.
The memorandum also criticised proposals relating to the Power Consumers Assistance Fund, the expansion of the powers of the Nigerian Electricity Management Services Agency, and the structure of the Forum of Electricity Regulators.
Particularly contentious is a provision that grants the Nigerian Electricity Regulatory Commission final administrative appellate jurisdiction on certain matters arising within the forum.
The state regulators argued that such a provision effectively places state regulators under federal control, contrary to the intent of the Electricity Act 2023.
In addition, the regulators opposed the classification of electricity generation, transmission, distribution, and supply as essential services, as well as provisions dealing with government-owned enterprises as licensees and obligations to host communities.
They also expressed reservations about proposed federal oversight on consumer protection, tariff design, and anti-trust regulations within state electricity markets.
According to them, these responsibilities should fall squarely within the jurisdiction of state regulators, who are better positioned to address local realities.
The memorandum warned that the cumulative effect of these provisions could be a rollback of the decentralisation reforms that have begun to reshape Nigeria’s electricity sector.
“A review of the bill suggests an intention to reconsider powers at the federal level, effectively reversing the devolution of legislative and regulatory authority to states,” the document stated.
“This would return Nigeria to a regime that, over the past two decades, has failed to significantly improve power availability or per capita electricity consumption.”the document added
The regulators noted that many states have already begun leveraging the Electricity Act 2023 to develop their own electricity markets.
These efforts include engaging investors, establishing regulatory frameworks, and initiating projects aimed at improving power supply within their jurisdictions.
They warned that uncertainty arising from the proposed amendments could undermine investor confidence and stall ongoing initiatives.
The dispute underscores broader tensions between federal and state governments over the future structure of Nigeria’s electricity industry.
The Electricity Act 2023 was enacted following a constitutional amendment that removed electricity from the Exclusive Legislative List, thereby allowing states to legislate and operate independently in the sector.
