States Resist Move to Amend Electricity Act
A new clash is unfolding over Nigeria’s electricity sector as state regulators accuse the National Assembly of trying to roll back powers devolved to states under the Electricity Act 2023.
In a memorandum to the Senate Committee on Power, regulators from 16 states warned that the proposed Electricity Act (Amendment) Bill 2026 could undo one of the most significant reforms in the sector.
They argued that the bill seeks to restore federal oversight over matters already constitutionally assigned to states, undermining efforts to build sub-national electricity markets.
The regulators identified 17 contentious provisions, including clauses on state legislative authority, supremacy of state laws, restrictions on wholesale electricity participation, and federal control over activities linked to the national grid.
They also opposed provisions expanding the powers of the Nigerian Electricity Regulatory Commission (NERC), granting it appellate authority over state regulators, and designating electricity services as “essential,” which they said could erode state jurisdiction.
“This provision is based on a shocking miscomprehension of Nigerian constitutional law,” the memorandum stated, arguing that the National Assembly cannot confer or restrict state powers through ordinary legislation.
The regulators warned that the amendments could create market uncertainty, discourage investors, and reverse decentralisation gains.
They insisted that coordination between NERC and state regulators, not top-down federal control, is needed to achieve reforms.
Energy experts say the dispute highlights the tension between Abuja and states over the future of Nigeria’s power industry, with lawmakers’ decision likely to determine whether the country deepens decentralisation or reverts to a centralised model.