Proposed Electricity Act Amendment Threatens Reforms

The proposed Electricity Act Amendment Bill 2026 has passed its second reading in the Senate and is awaiting public hearings. Critics, including the Nigerian Electricity Regulatory Commission (NERC) and the Power Sector Reform Commission (SERC), warn that the bill threatens to reverse the decentralization achieved by the Electricity Act 2023, which was signed into law by former President Muhammadu Buhari on March 17, 2023.

This act allowed states to develop their electricity markets, with 16 states, including Enugu, already passing laws to establish independent frameworks. The amendment bill is seen as a move to restore central control over the electricity sector, potentially eroding investor confidence and undermining the regulatory independence that the 2023 act aimed to establish.

Key provisions in the amendment, such as those concerning licensing and tariff regulation, could lead to a rollback of the progress made in decentralizing Nigeria's power supply industry.