The Electricity Act (Amendment) Bill, 2025, which has passed the second reading at the Senate, is introducing what lawmakers have described as ‘real decentralisation’ of Nigeria’s power sector, formally transferring regulatory powers to state governments.
But beneath the surface of this ambitious reform lies a complex regulatory architecture that some experts warn could create more problems than it solves.
While the bill grants states new powers, it also retains significant federal control, particularly through the Nigerian Electricity Regulatory Commission (NERC), which remains the primary authority on matters related to the national grid, market standards, and technical regulations.
This dual structure, they argue, may sow confusion and spark jurisdictional clashes between federal and state actors.
Analysts say the proposed law introduces what appears to be decentralisation in principle but embeds centralised control in practice.
As states race to establish their own electricity markets, concerns are growing that the bill, if not carefully implemented, could lead to overlapping mandates, policy contradictions, and a fresh wave of institutional power struggles, ultimately stalling the very progress it was designed to unlock.
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