Senate Push for Electricity Act Amendment Triggers Concerns Over Regulatory Powers and Investment Stability
By Mgboji Merit Chinasa
E-ISSN: 2354-4481
The Senate is considering a move to further consolidate federal authority over Nigeria’s electricity sector through the proposed Electricity Act (Amendment) Bill 2026, a development that has generated significant concern among industry stakeholders.
The bill, which seeks to reintroduce stronger federal oversight in the regulation of electricity markets, has raised fears that it may weaken the decentralization framework established under the Electricity Act 2023. Critics argue that the earlier reforms had opened space for state-level participation in power generation and distribution.
Sixteen State Electricity Regulatory Commissions have expressed opposition to the proposed amendment, warning that a reversal of intrastate market autonomy could disrupt ongoing reforms. They caution that such a shift may create regulatory uncertainty and discourage private sector participation.
Stakeholders further warn that the proposed changes could put over $1 billion in private investments at risk, potentially triggering what they describe as a “regulatory gridlock” in the electricity sector.
Industry observers also note that the debate reflects broader tensions between federal oversight and state-driven energy reforms, with concerns that increased centralization may slow down progress in addressing Nigeria’s persistent power supply challenges.
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