States Oppose Senate Move to Amend Electricity Act, Warn Against Return to Federal Control
In a memorandum submitted to the Senate Committee on Power and obtained by The PUNCH, the regulators expressed concerns that the proposed Electricity Act (Amendment) Bill 2026 seeks to re-establish extensive federal oversight over areas they argue have become the constitutional responsibility of states.
The memorandum, contained in a letter dated May 26, 2026, was signed on behalf of state electricity regulatory commissions and bureaus in Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo and Plateau states.
According to the regulators, the Electricity Act 2023 had enabled states to begin developing sub-national electricity markets and attract investments based on the framework established by the law. They said they had earlier met with the Senate Committee on Power and were subsequently requested to harmonise their concerns into a single document for consideration by lawmakers, the Nigerian Electricity Regulatory Commission and other stakeholders.
In the letter, the regulators stated that they had leveraged the provisions of the Electricity Act 2023 to commence the development of state electricity markets and appreciated the opportunity provided by the Senate committee to present their concerns regarding the amendment bill.
The state agencies said they had identified 17 controversial provisions in the proposed amendments which, in their view, could weaken the constitutional authority granted to states in the power sector.
Among the issues raised were the powers of State Houses of Assembly to legislate on electricity matters, the supremacy of state laws within state electricity markets, and provisions aimed at maintaining federal control over activities linked to the national grid.
They also objected to clauses relating to states’ participation in the wholesale electricity market, oversight of the Nigerian Wholesale Electricity Market, state authority over independent transmission and distribution networks, and the establishment and management of the Power Consumers Assistance Fund.
Further concerns were raised over proposals to expand the powers of the Nigerian Electricity Management Services Agency, the structure and decisions of the Forum of Electricity Regulators, and a provision granting the Nigerian Electricity Regulatory Commission final administrative appellate authority on certain issues arising from the forum.
The regulators equally opposed provisions classifying electricity generation, transmission, distribution and supply as essential services, as well as clauses dealing with government-owned enterprises operating as licensees and obligations to host communities.
Other contentious areas highlighted in the memorandum include the regulation of intra-state electricity matters with implications for the national grid, timelines and conditions for states transitioning to independent electricity markets, and proposed federal oversight of consumer protection, competition issues and tariff setting within state jurisdictions.
They argued that the disputed provisions require broader consultations to ensure that the decentralisation objectives underpinning the Electricity Act 2023 are not undermined.
At the heart of the disagreement is the interpretation of constitutional amendments that empowered states to legislate on electricity matters within their territories. The regulators maintained that the proposed amendment bill incorrectly assumes that state legislatures derive their authority from the National Assembly rather than directly from the Constitution.
According to them, any attempt by the National Assembly to grant, limit or redefine those powers through ordinary legislation would amount to a breach of constitutional provisions.
