No fewer than 16 states have opposed the Senate’s Electricity Act Amendment Bill 2026, describing it as an attempt to reverse key decentralisation gains granted under the Electricity Act 2023.
The states, through their electricity regulators, warned that the proposed amendment seeks to claw back constitutional powers that allow them to establish independent electricity markets and attract private investment.
The position was presented in a memorandum submitted to the Senate Committee on Power and signed by regulators from Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo and Plateau states.
The regulators said the Electricity Act 2023 had already enabled states to begin developing sub-national electricity markets and engage investors, but argued that the amendment bill threatens to recentralise control under federal agencies such as the Nigerian Electricity Regulatory Commission (NERC).
They expressed concern that the bill seeks to restore extensive federal oversight over areas they say have already been devolved to the states, including electricity generation, distribution, and retail within state markets.
According to them, they had earlier engaged the Senate Committee on Power and were asked to consolidate their concerns into a single memorandum for lawmakers and stakeholders.
In the document made available to newsmen yesterday, they warned that the bill contains at least 17 contentious provisions, including those relating to state legislative powers, the supremacy of state electricity laws within state markets, and restrictions on state participation in wholesale electricity trading.
Other disputed areas include federal control over grid-connected activities, the role of NERC in independent transmission and distribution systems, the administration of the Power Consumers Assistance Fund, and the proposed expansion of the Nigerian Electricity Management Services Agency’s powers.
The regulators also objected to provisions granting NERC final appellate authority over disputes involving state regulators, insisting that both bodies operate within separate constitutional spheres and are of equal standing.
They described as unconstitutional the suggestion that the National Assembly can, through ordinary legislation, confer or restrict the legislative powers of states, arguing that such authority is not provided for under Nigeria’s constitutional framework.
They further warned that the bill could undermine investor confidence, as many stakeholders have already committed resources based on the decentralised framework introduced by the 2023 Act.
Beyond constitutional concerns, the regulators said the proposed law risks destabilising the emerging electricity market by reintroducing regulatory uncertainty and weakening reforms aimed at improving efficiency and competition.
They maintained that effective coordination between federal and state regulators, rather than centralised control, is necessary to achieve the objectives of the power sector reforms.
While acknowledging the importance of harmonisation, they argued that structures such as the proposed Forum of Electricity Regulators should be voluntary and not imposed through legislation.
The regulators also opposed provisions that classify electricity generation, transmission, distribution and supply as essential services across all markets in a way that could extend federal oversight into state-regulated areas, including tariff setting.
They further rejected proposals on NERC’s control over contributions to the Power Consumers Assistance Fund, stating that such decisions should fall within state jurisdiction where retail electricity markets are regulated locally.
Other concerns raised include host community obligations, licensing of government-owned electricity enterprises, timelines for state market transitions, and the expanded role of federal agencies in state electricity systems.
The states warned that the amendment bill, if passed in its current form, could roll back the gains of decentralisation introduced under the Electricity Act 2023 and stall ongoing investments in the power sector.