States kick as Senate moves to amend Electricity Act

A new conflict regarding the governance of Nigeria's electricity sector is emerging, as state electricity regulators have accused the National Assembly of attempting to reclaim powers that have already been transferred to states in accordance with the Constitution and the Electricity Act 2023.

In a strongly articulated memorandum submitted to the Senate Committee on Power and acquired by our correspondent on Tuesday, electricity regulatory commissions and bureaus from 16 states cautioned that the proposed Electricity Act (Amendment) Bill 2026 could undo one of the most crucial reforms in Nigeria's power sector.

The regulators contended that the amendment bill, instead of enhancing the electricity market, aims to reinstate extensive federal control over issues they assert have constitutionally become the domain of the states.

These concerns were outlined in a letter dated May 26, 2026, directed to the Chairman of the Senate Committee on Power and signed on behalf of the State Electricity Regulatory Commissions and Bureaus.

The signatories included the chairpersons and chief executives of electricity regulators from Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo, and Plateau states.

The regulators indicated that they had utilized the Electricity Act 2023 to initiate the development of sub-national electricity markets and had already engaged investors based on the framework established by the law.

They mentioned that they had previously met with the Senate committee and were later asked to compile their concerns into a single memorandum for the review of lawmakers, the Nigerian Electricity Regulatory Commission, and other relevant stakeholders.

A new dispute is arising concerning the governance of Nigeria's electricity sector, as state electricity regulators have accused the National Assembly of attempting to reclaim powers that have already been delegated to the states in accordance with the Constitution and the Electricity Act of 2023.

In a strongly worded memorandum submitted to the Senate Committee on Power and obtained by our correspondent on Tuesday, electricity regulatory commissions and bureaus from 16 states warned that the proposed Electricity Act (Amendment) Bill 2026 could reverse one of the most significant reforms in Nigeria's power sector.

The regulators argued that the amendment bill, rather than improving the electricity market, seeks to restore extensive federal oversight over matters they claim have constitutionally become the responsibility of the states.

These concerns were detailed in a letter dated May 26, 2026, addressed to the Chairman of the Senate Committee on Power and signed on behalf of the State Electricity Regulatory Commissions and Bureaus.

The signatories included the chairpersons and chief executives of electricity regulators from Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo, and Plateau states.

The regulators indicated that they had leveraged the Electricity Act 2023 to initiate the development of sub-national electricity markets and had already engaged investors based on the framework established by the law.

They noted that they had previously met with the Senate committee and were subsequently requested to consolidate their concerns into a single memorandum for the consideration of lawmakers, the Nigerian Electricity Regulatory Commission, and other pertinent stakeholders.

The state electricity regulators stated that they had identified 17 contentious provisions in the proposed amendments to the Electricity Act that they believed could jeopardize the constitutional powers already conferred upon states in the electricity sector.

According to the regulators, the points of contention encompass the authorization of State Houses of Assembly to legislate on electricity issues, the dominance of state laws within state electricity markets, and provisions aimed at maintaining federal oversight over all activities related to the national grid.

Other contentious clauses pertain to limitations on states’ involvement in the wholesale electricity market, issues regarding the Nigerian Wholesale Electricity Market, the jurisdiction of states over independent transmission and distribution networks, and the creation and management of the Power Consumers Assistance Fund.

The regulators also expressed concerns regarding the suggested enhancement of the powers of the Nigerian Electricity Management Services Agency, the composition and decisions of the Forum of Electricity Regulators, and the provision that grants the Nigerian Electricity Regulatory Commission final administrative appellate authority on specific matters arising within the forum.

Additionally, they opposed provisions that classify electricity generation, transmission, distribution, and supply as essential services, along with clauses addressing government-owned enterprises as licensees and their responsibilities to host communities.

Further areas of disagreement include the regulation of intra-state electricity issues that could affect the national grid, the establishment of timelines and phased conditions for states transitioning to independent electricity markets, and proposed federal oversight concerning consumer protection, anti-trust regulations, and tariff design within state electricity jurisdictions.

The regulators contended that the disputed provisions necessitate further consultation to ensure that the decentralization goals of the Electricity Act are not compromised by subsequent amendments.

“A review of the Bill suggests that 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, with the Nigerian Electricity Regulatory Commission retaining full supervisory powers over the market. Effectively, it appears that the intention of the Bill is that Nigeria should continue with the same regime that, for 20 years, has not led to any significant increase in power availability or per capita consumption for Nigerians, despite ever-increasing (and unsustainable) federal debt.”

At the heart of the disagreement lies the interpretation of the constitutional amendments that permitted states to legislate on electricity issues within their jurisdictions. The regulators contended that the proposed amendment bill incorrectly presumes that state legislatures obtain their authority from the National Assembly, rather than directly from the Constitution.

They argued that any effort by the National Assembly to grant, limit, or redefine those powers through standard legislation would constitute a breach of the Constitution.

The memorandum indicated, "Section 2 of the Bill seeks to amend Section 2(2)(a)-(e) of the Principal Act. This section implies that the National Assembly retains the authority to delegate legislative powers to the Houses of Assembly of the States, indicating that the Bill (or the Principal Act) serves as the origin of a state's power to legislate on its electricity markets.

“This provision is based on a shocking miscomprehension of Nigerian constitutional law—it proceeds from the wrong assumption that the NASS, by ordinary legislation and not constitutional amendment, can confer (or restrict) the legislative power of states.

“The constitutional division of powers is fundamental to federalism, ensuring a balance between national unity and state autonomy. There is no legal framework for the NASS to ‘empower’ state governments to make law by ordinary legislation, as the language of the Bill attempts to do.

“The constitutional division of powers is fundamental to federalism, ensuring a balance between national unity and state autonomy. There is no legal framework for the NASS to ‘empower’ state governments to make law by ordinary legislation, as the language of the Bill attempts to do. Consequently, Section 2 of the Bill, seeking to amend Section 2 of the Act, is not consistent with the Constitution.”

The regulators described as “a shocking miscomprehension of Nigerian constitutional law” the provisions of the bill that appear to suggest that the National Assembly is the source of states’ authority over electricity matters.

They warned that the proposed law could undermine the principle of federalism by weakening state autonomy. Beyond constitutional concerns, the regulators said the bill could create uncertainty in the electricity market and discourage investors who had already committed resources based on the existing legal framework.

“The clear intention behind the new drafting is to reconsolidate in the Federal Government matters solely within the state electricity markets which had been devolved to the states,” the memorandum stated.

“This will defeat the key objectives of the Electricity Act and the various states’ electricity laws, even before the regime introduced by them has taken any root. It will introduce avoidable disruption in the industry as significant investment decisions have already been taken based on the Electricity Act 2023, and these investments are now put at risk by this proposed amendment.”

The state regulators specifically criticized provisions concerning federal oversight of activities related to the national grid, limitations on state authority regarding wholesale electricity tran