KEY POINTS
- Electricity regulators from 16 states oppose the Senate’s Electricity Act amendment bill.
- They say it would claw back powers devolved to states under the Electricity Act 2023.
- The regulators flagged 17 contentious provisions and warned of risks to investment.
A fresh battle over Nigeria’s electricity sector is brewing, as state regulators accuse the National Assembly of trying to claw back powers already devolved to states under the Constitution and the Electricity Act 2023. In a strongly worded memorandum to the Senate Committee on Power, regulators from 16 states warned that the proposed Electricity Act (Amendment) Bill 2026 could reverse one of the sector’s most significant reforms.
States resist a federal pullback
The regulators argued that the bill, rather than strengthening the market, seeks to restore extensive federal oversight over matters that have constitutionally become state responsibilities. Signatories to the May 26 letter included regulators from Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo and Plateau.
According to the memorandum, the regulators identified 17 contentious provisions that could undermine the powers already granted to states. Specifically, the disputed clauses cover the authority of state assemblies to legislate on electricity, the supremacy of state laws within state markets, federal control over grid-connected activities and restrictions on states’ role in the wholesale market. Moreover, they faulted proposed changes to NERC’s powers, the Forum of Electricity Regulators and the Power Consumers Assistance Fund.
A clash over federalism and investment
At the heart of the dispute lies the source of state powers. The regulators argued that the bill wrongly assumes state legislatures derive their authority from the National Assembly rather than directly from the Constitution. Therefore, they described the relevant clause as “a shocking miscomprehension of Nigerian constitutional law,” insisting that ordinary legislation cannot confer or restrict the legislative power of states.
Furthermore, the regulators warned that the bill could unsettle the market and scare off investors who committed funds under the existing framework. According to them, the new drafting would reconsolidate matters that the Fifth Alteration devolved to states, which would defeat the law’s objectives “even before the regime introduced by them has taken any root.”
Consequently, the regulators urged wider consultation and rejected provisions that would give NERC final appellate jurisdiction over state regulators, arguing that both sit “on equal standing within their respective constitutional spheres.” Ultimately, they recommended coordination through a jointly negotiated memorandum rather than top-down legislation. As the Senate deliberates, lawmakers’ final position could decide whether Nigeria deepens decentralization or drifts back toward central control.
