Nigeria's Electricity Act 2023: Decentralizing Power Sector

President Bola Tinubu signed the Electricity Act 2023, which aims to decentralize Nigeria's power sector by allowing state governments to generate, transmit, and distribute electricity within their territories without needing federal approval. This act dismantles the federal monopoly on power and introduces a dual regulatory system where both state and federal governments oversee electricity supply.

The act emphasizes the adoption of renewable energy, mandating electricity generation companies to meet renewable energy obligations. States such as Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi have already passed enabling legislation to establish their regulatory frameworks.

The Nigerian Electricity Regulatory Commission (NERC) retains authority over the national grid and inter-state transmission, ensuring safety standards. However, the act's successful implementation hinges on compliance and enforcement, particularly regarding renewable energy procurement, to avoid becoming merely a ceremonial exercise.