States Accuse Senate Of Attempting To Reclaim Electricity Powers

State electricity regulators from 16 states have accused the National Assembly of trying to reverse the decentralisation of Nigeria’s power sector through the proposed Electricity Act (Amendment) Bill 2026.

The regulators, in a memorandum submitted to the Senate Committee on Power, said the amendment bill appears aimed at restoring federal control over areas already devolved to states under the Constitution and the Electricity Act 2023.

They warned that the move could undermine recent reforms that allowed states to establish their own electricity markets and regulatory frameworks, arguing that investors had already begun committing resources based on the existing law.

According to the document, regulators from states including Lagos, Enugu, Edo, Oyo, Ogun, Abia, Anambra and others said they had identified several contentious provisions in the bill. These include clauses relating to state legislative powers, control over electricity activities linked to the national grid, and the role of the Nigerian Electricity Regulatory Commission (NERC) in state electricity matters.

The states argued that electricity regulation within state boundaries falls under their constitutional authority and insisted that the National Assembly cannot, through ordinary legislation, redefine or limit powers already granted by the Constitution.

They further warned that provisions expanding federal oversight could weaken sub-national electricity markets, discourage investment, and disrupt ongoing reforms across the country.

The regulators also rejected proposals that would give NERC final appellate authority over disputes involving state regulators, insisting that both federal and state regulators operate within separate constitutional jurisdictions.

They urged lawmakers to engage in broader consultation, stressing that the success of the decentralised electricity framework depends on coordination rather than a return to centralised control.

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The Electricity Act 2023, which followed constitutional amendments removing electricity from the Exclusive Legislative List for intra-state supply, paved the way for states to independently generate, transmit, and distribute power within their territories.

The proposed amendment bill, however, has now sparked renewed debate over the balance of power between the federal government and states in Nigeria’s electricity sector.