A fresh dispute has emerged between state electricity regulators and the National Assembly over the proposed amendment to the Electricity Act 2023, with states warning that the move could reverse key gains in Nigeria’s power sector reforms.
Electricity regulatory commissions and bureaus from 16 states have accused the Senate of attempting to reclaim powers already devolved to states under the Constitution and the Electricity Act, arguing that the proposed amendment bill could weaken sub-national electricity markets.
The concerns were contained in a memorandum submitted to the Senate Committee on Power, where the regulators insisted that the Electricity Act (Amendment) Bill 2026 threatens the decentralisation framework that allowed states to begin independently regulating their electricity sectors.
The regulators said they had already begun building state-level electricity markets and attracting investors under the current legal framework, warning that altering the law could destabilise ongoing reforms and discourage investment in the sector.
They specifically faulted provisions in the amendment bill that, according to them, attempt to restore federal dominance over electricity matters already transferred to states, including issues around generation, distribution, and regulation within state boundaries.
The regulators also argued that the National Assembly lacks the constitutional authority to “confer or restrict” state legislative powers through ordinary legislation, describing some provisions in the bill as inconsistent with Nigeria’s federal structure.
They further warned that the proposed amendments could create regulatory uncertainty, undermine investor confidence, and disrupt investments already made under the Electricity Act 2023, which has encouraged several states to establish their own electricity laws and regulatory bodies.
The controversy underscores growing tensions over the structure of Nigeria’s electricity market, as lawmakers continue deliberations on a bill that could determine whether the sector remains decentralised or shifts back toward stronger federal control.
