Electricity Act Amendment Sparks Federal-State Clash Over Regulatory Control
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Electricity Act Amendment Sparks Federal-State Clash Over Regulatory Control
A fresh dispute over the future governance of Nigeria’s electricity sector has emerged, with electricity regulators from 16 states accusing the National Assembly of attempting to reclaim powers already devolved to states under the Constitution and the Electricity Act 2023.
In a memorandum submitted to the Senate Committee on Power, the state regulators warned that the proposed Electricity Act (Amendment) Bill 2026 could undermine one of the most significant reforms in the country’s power sector by restoring extensive federal control over areas they say now fall within state jurisdiction.
The document, 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 enabled states to establish sub-national electricity markets and attract investment based on a decentralised regulatory framework. They argued that the proposed amendments threaten those gains and could create uncertainty for investors who have already committed resources under the current regime.
The regulators identified 17 contentious provisions in the amendment bill. Among the disputed areas are legislative authority over electricity matters, the supremacy of state electricity laws within state markets, federal oversight of activities linked to the national grid, restrictions on states’ participation in the wholesale electricity market, and the powers of the Nigerian Electricity Regulatory Commission.
They also objected to proposals expanding the authority of the Nigerian Electricity Management Services Agency, granting NERC final appellate powers over certain disputes involving state regulators, and designating electricity generation, transmission, distribution and supply as essential services.
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 argued that the bill incorrectly suggests that state legislatures derive their authority from the National Assembly rather than directly from the Constitution.
They described this position as a fundamental misunderstanding of Nigerian constitutional law and warned that any attempt by the National Assembly to grant, restrict or redefine state legislative powers through ordinary legislation would violate constitutional principles.
The memorandum further argued that the proposed amendments seek to reverse the devolution of legislative, governance and regulatory powers over state electricity markets by reconsolidating authority at the federal level through NERC.
According to the regulators, such a move would undermine the objectives of the Electricity Act 2023 and disrupt investments already being made under the decentralised framework.
They maintained that coordination between federal and state regulators is necessary, particularly on transmission matters, but insisted that cooperation should be achieved through collaboration rather than expanded federal control.
The regulators also rejected proposals that would allow NERC to exercise final administrative appellate jurisdiction over disputes involving state electricity commissions, arguing that both federal and state regulators operate within separate constitutional spheres of authority.
In addition, they opposed provisions relating to tariff oversight, consumer protection, anti-trust regulation, host community obligations, the Power Consumers Assistance Fund and timelines for states transitioning into independent electricity markets.
The dispute highlights growing tensions over the future structure of Nigeria’s electricity industry. The Electricity Act 2023, enacted following constitutional amendments that removed electricity from the Exclusive Legislative List, empowered states to generate, transmit and distribute electricity within their borders and establish their own regulatory frameworks.
Since then, several states, including Lagos, Enugu, Ekiti, Ondo and Edo, have enacted electricity laws and launched reforms aimed at developing independent electricity markets.
As lawmakers continue deliberations on the amendment bill, the outcome could determine whether Nigeria deepens its decentralised electricity model or returns to a more centralised regulatory structure.
