States kick as Senate moves to amend Electricity Act

A significant conflict is emerging over the control of Nigeria's electricity sector as state electricity regulators push back against proposed amendments to the Electricity Act.

Regulators from 16 states have submitted a strongly worded memorandum to the Senate Committee on Power, warning that the Electricity Act (Amendment) Bill 2026 could reverse crucial reforms. They contend that the bill aims to reclaim powers already constitutionally devolved to states, re-establishing extensive federal oversight on matters they insist are now state responsibilities. This move is seen as an attempt to centralize control over the burgeoning sub-national electricity markets that states have begun developing since the Electricity Act 2023 was enacted.

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We represent State Regulatory Commissions/Bureaus that have taken advantage of the Electricity Act 2023 to commence the development of our sub-national electricity markets and sectors. We are grateful for the audience you granted us to raise concerns on the ongoing consideration of the proposed Amendment Bill 2026 to the Electricity Act 2023.

The memorandum, signed by officials from states including Lagos, Abia, and Plateau, highlights 17 specific provisions in the proposed amendment that they believe infringe upon state powers. Key areas of contention include the authority of State Houses of Assembly to legislate on electricity, the supremacy of state laws within state electricity markets, and the retention of federal control over activities connected to the national grid. The state regulators are concerned that these amendments could hinder investment and the development of independent state electricity markets, which they have been actively pursuing.

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As agreed during our discussion, we have collated and consolidated the comments into one document which is hereby attached for the consideration of the Senate and House Committees on Power, NERC and other stakeholders.