Nigerian State Electricity Regulators Warn 2026 Amendment Bill Will Disrupt Sector Decentralisation, Undo $1bn Investment

Sixteen State Electricity Regulatory Commissions (SERCs) have voiced strong opposition to Nigeria's proposed Electricity Act Amendment Bill 2026. They argue the legislation aims to reverse the devolution of power to states, a move they warn could trigger a constitutional crisis and stall significant capital investment in the sector. The SERCs' concerns are detailed in a memorandum addressed to the Senate Committee on Power, highlighting that the bill contradicts the Nigerian Constitution and the Electricity Act 2023.

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The general intention is to reverse the devolution of legislative, governance and regulatory powers over electricity matters that occur solely within the respective states to the state governments, in favour of a reconsolidation of powers at the federal level.

The core of their objection lies in the bill's apparent intention to re-centralize federal control over electricity matters that are constitutionally within states' jurisdiction. The SERCs assert that the 5th Alteration of the Nigerian Constitution and the Electricity Act 2023 explicitly devolved legislative, governance, and regulatory authority for electricity markets operating solely within states to the state governments. They contend that the proposed amendment seeks to undo these gains, potentially returning the power sector to a 20-year regulatory gridlock that hindered progress.

Specifically, the regulators criticize Section 2 of the bill, deeming it based on a "shocking miscomprehension of Nigerian Constitutional Law." They argue that the provision attempts to position the National Assembly as the source of states' legislative power on electricity, requiring federal approval for state assembly laws. The SERCs emphasize that both the National Assembly and State Houses of Assembly derive their powers directly from the constitution and that any alteration requires a constitutional amendment, not an ordinary act of the National Assembly.

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Effectively, it appears that the intention of the Bill is that Nigeria should continue with the same regime that, for twenty years, has not led to any significant increase in power availability of per capita consumption for Nigerians, despite ever increasing and unsustainable federal debt.

Furthermore, the SERCs warned that the bill's proposed elimination of Section 2(2) of the 2023 Act, which protected state laws from invalidation, and its attempt to prohibit state laws from conflicting with federal provisions, undermine the principles of federalism. They stated that under the constitution's "covering the field" doctrine, only the courts, not the National Assembly, have the authority to determine if a state law conflicts with federal law.

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The respective legislative powers of NASS and the SHAs are derived directly from the constitution… This power can only be added to or restricted by constitutional amendment, and not by an Act of NASS.