By Monsurat Abisoye
State electricity regulators have opposed the proposed Electricity Act (Amendment) Bill 2026, warning that it could reverse key reforms introduced under the Electricity Act 2023 and restore broad federal control over the power sector.
In a memorandum submitted to the Senate Committee on Power, regulators from 16 states—including Lagos, Ogun, Oyo, Edo, Enugu, and Ondo—argued that the bill seeks to weaken powers constitutionally granted to states following amendments to the 1999 Constitution.
The regulators said several states have already established electricity laws, regulatory agencies, and sub-national power markets, thereby attracting investment under the current legal framework. They warned that changing the rules could create uncertainty and discourage investors.
According to the memorandum, 17 provisions in the amendment bill are contentious, including those relating to state legislative authority, federal oversight of grid-connected activities, participation in wholesale electricity markets, NERC’s powers, tariff regulation, consumer protection, and the proposed Forum of Electricity Regulators.
The regulators described as a “shocking miscomprehension of Nigerian constitutional law” provisions suggesting that state powers over electricity are derived from the National Assembly rather than directly from the Constitution. They argued that the bill effectively seeks to reconsolidate powers at the federal level, undermining the decentralisation objectives of the Electricity Act 2023.
They also rejected proposals granting the Nigerian Electricity Regulatory Commission final appellate authority over disputes involving state regulators, insisting that both federal and state regulators operate within separate constitutional jurisdictions.
The disagreement highlights growing tensions over the future of Nigeria’s electricity industry. Since the Electricity Act 2023 came into force, several states have begun implementing independent electricity reforms aimed at attracting investment and improving power supply. The outcome of the National Assembly’s deliberations on the amendment bill is expected to determine whether the sector moves towards deeper decentralisation or returns to greater federal control.