State Commissioners Reject Proposed 2025 Electricity Act Amendment, Cite Threat to Power Sector Reforms

The Forum of Commissioners of Power and Energy in Nigeria (FOCPEN) has expressed strong opposition to the proposed Electricity Act (Amendment) Bill, 2025, warning that the bill poses a serious threat to the country’s newly decentralized electricity market and could reverse key reforms achieved under the landmark Electricity Act of 2023.

In a detailed statement issued on July 16 and made available to journalists on Friday, FOCPEN described the bill as a “profound surprise” and criticized the National Assembly for failing to consult with state governments and their regulatory bodies before introducing sweeping changes to the two-year-old law.

The statement was jointly signed by Prince Eka Williams, Commissioner of Power and Renewable Energy for Cross River State and Chairman of FOCPEN, and Barr. Omale Omale, Commissioner of Power, Renewable Energy and Transport for Benue State and Secretary of FOCPEN.

“This unexpected legislative move comes barely two years after the landmark Electricity Act 2023 was signed into law,” the statement read, adding that many states are still in the early stages of operationalizing their electricity markets under the new framework.

The Electricity Act 2023 followed the fifth alteration of Nigeria’s 1999 Constitution, allowing states to establish and regulate their own electricity markets. Since then, over 16 states have passed electricity laws, marking a significant shift in Nigeria’s power sector governance. FOCPEN warned that the proposed amendment bill undermines this progress.

“This unilateral approach undermines the spirit of cooperative federalism and threatens to reverse the gains made in decentralizing Nigeria’s electricity sector,” the commissioners stated.

Among the Forum’s key concerns is what it calls an “unconstitutional overreach.” FOCPEN argues that the amendment attempts a “backdoor amendment” of the Constitution by reintroducing federal dominance in areas now constitutionally reserved for states.

The proposed amendments to Sections 2 and 230 of the Act, including the introduction of new sections 230A–C, are seen as efforts to give the Nigerian Electricity Regulatory Commission (NERC) overriding authority, even in intra-state electricity markets.

“The amendment bill, if passed, will create a constitutional conflict between the Federal Government and States, as well as legal and regulatory conflicts between federal and state regulators,” the statement warned.

FOCPEN also decried the reintroduction of electricity subsidies in the bill, noting that subsidies already consumed ₦1.94 trillion in 2024 and over ₦5 trillion remains unpaid. The Forum argued that continued reliance on subsidies is unsustainable and could deter private sector investment.

“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,” it said.

Additionally, the commissioners warned that the proposed bill could increase electricity tariffs by creating multiple new federal institutions funded through consumer contributions. This, they say, would place a heavier financial burden on already struggling consumers.

“The imposition of additional financial burden on electricity customers already struggling with high electricity tariffs… is unacceptable,” the Forum declared.

The Forum further raised alarm over the bill’s potential to create regulatory conflict, dilute accountability, and discourage investment in state-managed electricity markets.

“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.

FOCPEN concluded by calling on the National Assembly to halt further deliberation on the bill. It urged that any future amendments to the Electricity Act 2023 be preceded by broad-based consultations with state governments and stakeholders.

“We reiterate that the Electricity Act 2023, as currently enacted, provides the necessary framework for achieving these objectives,” the Forum affirmed.