THE ELECTRICITY ACT AMENDMENT GAMBLEThe amendment bill is unnecessary

The Electricity Act Amendment Bill 2025, currently awaiting a public hearing in the Senate, has sparked controversy in Nigeria's power sector. The original Electricity Act of 2023 had decentralized the industry, allowing states to participate in electricity generation, transmission, and distribution.

However, the proposed amendment seeks to centralize control back to the Nigerian Electricity Regulatory Commission (NERC), undermining the regulatory independence of State Electricity Regulatory Commissions (SERCs) established in all 36 states. Stakeholders, including the Forum of Commissioners of Power and Energy (FOCPEN), have criticized the lack of consultation and fear a rollback of progress made so far.

The amendment bill could erode investor confidence, create regulatory instability, and hinder the growth of the subnational electricity market envisioned in the 2023 Act. Calls have been made for a critical review of the amendment to ensure the continued success of the decentralized framework.