A fresh dispute has emerged in Nigeria’s power sector as electricity regulators from 16 states push back against a proposed amendment to the Electricity Act 2023, warning that it could undermine the gains of decentralization and restore extensive federal control over electricity regulation.
In a memorandum submitted to the Senate Committee on Power, the state regulators argued that the Electricity Act (Amendment) Bill 2026 seeks to reverse powers already devolved to states under the Constitution and the Electricity Act 2023.
The document was signed by heads of electricity regulatory commissions and bureaus from Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo and Plateau states.
According to the regulators, several states have already begun developing sub-national electricity markets and attracting investments based on the framework established by the Electricity Act 2023. They warned that altering the law at this stage could create uncertainty and threaten ongoing investments in the sector.
The regulators identified 17 contentious provisions in the amendment bill, including issues relating to state legislative powers over electricity, federal oversight of activities connected to the national grid, wholesale electricity transactions, consumer protection, tariff regulation and the authority of state regulators.
They argued that the bill appears designed to return significant regulatory powers to the Federal Government and the Nigerian Electricity Regulatory Commission (NERC), despite constitutional amendments that empowered states to regulate electricity activities within their territories.
According to the memorandum, the National Assembly cannot grant or restrict powers already vested in state governments by the Constitution. The regulators described provisions suggesting otherwise as inconsistent with Nigeria’s federal structure and constitutional framework.
They maintained that the proposed amendments could weaken state autonomy, discourage private investment and disrupt reforms already underway in several states.
The regulators also opposed provisions that would allow NERC to exercise final administrative appellate authority over disputes involving state electricity regulators. They argued that both NERC and state regulatory commissions operate within separate constitutional jurisdictions and should remain independent of one another.
Concerns were also raised over proposals affecting mini-grids, independent distribution systems, host community obligations, the Power Consumers Assistance Fund and the role of the Nigerian Electricity Management Services Agency.
While acknowledging the need for cooperation between federal and state regulators, the states advocated for coordination through mutually agreed frameworks rather than federally imposed regulations.
The dispute underscores growing tensions over the future structure of Nigeria’s electricity industry following the constitutional reforms and the Electricity Act 2023, which empowered states to generate, transmit and distribute electricity within their boundaries.
Since the law took effect, states including Lagos, Enugu, Ekiti, Ondo and Edo have established regulatory agencies and commenced electricity market reforms aimed at attracting investment and improving power supply.
As deliberations on the Electricity Act (Amendment) Bill 2026 continue, stakeholders say the outcome could determine whether Nigeria deepens its decentralised electricity market or moves back toward a more centralised regulatory system.
