State Commissioners of Power and Energy, under the aegis of the Forum of Commissioners of Power and Energy in Nigeria, have rejected the proposed Electricity Act (Amendment) Bill, 2025, warning that it threatens recent reforms in the electricity sector and could impose heavy financial burdens on both consumers and state governments.
In a statement jointly signed by Prince Eka Williams, Commissioner of Power and Renewable Energy, Cross River State and Chairman of FOCPEN, and Barr. Omale Omale, Commissioner of Power, Renewable Energy and Transport, Benue State and Secretary of FOCPEN, the group cautioned that the amendment could reverse the gains of the 2023 Electricity Act by stripping states of their regulatory autonomy and reviving a costly subsidy regime.
The forum highlighted that over N5 trillion in electricity subsidies remain unpaid, with N1.94 trillion spent in 2024 alone. According to them, this backlog has severely undermined the financial viability of the sector, discouraged private investments, and placed the future of Nigeria’s electricity market at risk.
They warned that the new bill would further exacerbate the debt burden by forcing consumers to finance additional federal institutions and the Power Consumer Assistance Fund (PCAF) through surcharges—even in states that have adopted cost-reflective tariffs.
FOCPEN described the proposed legislation as a “backdoor amendment” to the Nigerian Constitution. They expressed concern that provisions in the bill would override state laws, grant the Nigerian Electricity Regulatory Commission (NERC) sweeping authority, and effectively dismantle the decentralization framework established under the 2023 Electricity Act.
“In addition, several provisions of the amendment bill egregiously violate foundational principles of true constitutional federalism, and threaten the successful implementation of a decentralized electricity market,” the forum stated.
“Notably, Amended Section 2 introduces a ‘non-conflict’ clause that subordinates State laws to federal provisions, even within intra-state electricity markets. Amended Section 230 and new Sections 230A–C impose rigid timelines and conditions on States, effectively allowing NERC to retain overriding authority, even in areas where States have exclusive jurisdiction.”
The commissioners argued that the bill, if enacted, could spark constitutional and regulatory disputes between federal and state governments. They warned that this would undermine the principle of cooperative federalism and could lead to judicial challenges.
The forum further criticized the timing of the bill, noting that it contradicts President Bola Ahmed Tinubu’s administration’s efforts to end unsustainable energy subsidies. “It should be noted that electricity subsidies gulped N1.94 trillion in 2024 alone. The total accrued electricity subsidies of more than N5 trillion remain unpaid, crippling the power sector and making it unviable for private sector investments. The amendment bill, if passed, will further exacerbate the financial burden on the federal government and states, undermining efforts to achieve a sustainable and self-financing power sector,” the group added.
According to the forum, the bill seeks to establish multiple federal agencies and funds whose operational expenses would be borne directly by electricity consumers, resulting in higher tariffs. They rejected what they described as an “unacceptable” imposition of financial burdens on consumers already struggling with high Band A electricity rates.
The proposed amendment mandates compulsory contributions from consumers and market participants to fund the PCAF. FOCPEN warned that this would effectively transfer over ₦5 trillion in unpaid subsidies to consumers, deepening the affordability crisis and worsening inequality in electricity access.
“Inevitably, the amendment bill will hinder public and private sector investments particularly in State electricity markets, and stall the momentum of recent reforms by President Bola Ahmed Tinubu in the power sector,” the statement added.
The commissioners also raised alarm over sections of the bill that would centralize regulation under NERC and the Nigerian Electricity Management Services Agency (NEMSA), stripping states of authority over electricity distribution, tariff design, and consumer protection—areas they insist are within their constitutional purview.
They stressed that the 5th alteration to the 1999 Constitution and the 2023 Electricity Act granted states exclusive authority to regulate electricity markets within their borders, regardless of connection to the national grid. The forum lamented the total lack of consultation with states during the drafting process, arguing that sustainable power sector reform can only be achieved through collaboration between federal and state governments.
The forum insisted that the proposed bill threatens to derail the progress made under the 2023 Electricity Act, which had been widely praised as a turning point for Nigeria’s struggling power sector. “This untimely amendment risks undermining President Bola Ahmed Tinubu’s key policy achievements in the energy sector,” they said.
FOCPEN concluded that the 2023 Act is still in its early implementation phase and should be allowed time to take root. Many states, they noted, have already begun enacting their own electricity laws to build localized and financially viable power markets.
The forum called on the National Assembly to immediately suspend any further consideration of the amendment bill. Noting that electricity is a concurrent legislative matter under the Constitution, they urged lawmakers to ensure that any future amendments are preceded by comprehensive engagement with state governments.
They emphasized that only a collaborative legislative process can support a resilient, investor-friendly, and sustainable Nigerian electricity sector.
