The Amended Electricity Act 2026: Decentralizing Nigeria’s Power Sector:
by Okoi Obono-Obla
The Electricity Act 2023 came into force in 2023. However, the Electricity Act 2023 (as amended in 2026), recently signed into law by President Bola Ahmed Tinubu, has dismantled the federal monopoly, decentralized, and restructured Nigeria’s problematic power sector. It now allows states to license, regulate, and manage their own generation, transmission, and distribution.
The Act repeals the 2005 Electricity Act, promotes renewable energy integration, and separates system operations from the Transmission Company of Nigeria (TCN).
Key Aspects of the Amended Electricity Act
– States’ Regulatory Authority: States can now establish their own electricity regulatory commissions, set tariffs, and regulate electricity markets within their borders.
– Decentralization: The Act moves the power sector from the exclusive legislative list to the concurrent list, enabling state-level control.
– Infrastructure & Operations: The Nigeria Independent System Operator (NISO) has been created to take over system operations from TCN, which will now focus solely on transmission assets.
– Renewable Energy Integration: Generation companies (GENCOs) and distribution companies (DISCOs) are mandated to integrate renewable energy into their energy mix to meet national net-zero targets.
– Consumer Protection: The Act introduces stronger consumer rights regulations, including fairer cost-reflective tariffs, improved service delivery, and streamlined complaint resolution.
– Conflicts & Oversight: While states have authority, they must still operate within the framework of national grid rules and technical standards.
This legislation aims to tackle Nigeria’s persistent power challenges by encouraging investment, promoting renewable energy, and enabling localized, more efficient power management.
Conclusion
The amended Electricity Act represents a bold step toward transforming Nigeria’s electricity sector. By empowering states, local governments, and private investors to take charge, it opens the door to massive investment opportunities that could revive the comatose power sector. If properly implemented, this reform has the potential to drive economic growth, enhance industrial productivity, and improve the quality of life for millions of Nigerians.
@ Okoi Obono-Obla
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