Article summary
- President Tinubu has assented to the 2023 Electricity Act which is a replacement for the Electricity and Power Sector Reform Act of 2005.
- The Act will bring about the de-monopolization of Nigeria’s electricity generation, transmission, and distribution of electricity at the National level and empower states, companies, and individuals to generate, transmit and distribute electricity.
- The Electricity Act was first passed in July 2022 under the Muhammadu Buhari administration.
President Bola Ahmed Tinubu has assented to the Electricity Act 2023 which was initially passed by lawmakers in July 2022.
The Electricity Act will replace the Electricity and Power Sector Reform Act of 2005. It provides a framework to guide the post-privatization phase of the Nigerian Electricity Supply Industry (NESI) as well as encourage private sector investments in the sector.
Highlighted below are some of the functions the Electricity Act seeks to guide-
State electricity empowerment
The de-monopolization of Nigeria’s electricity generation, transmission, and distribution of electricity at the National level empowers states, companies, and individuals to generate, transmit and distribute electricity.
Under the Act, states can issue licenses to private investors who can operate mini-grids and power plants within the state. However, the Act precludes interstate and transnational electricity distribution.
Powers of NERC
Under the Electricity Act 2023, the Nigerian Electricity Regulatory Commission (NERC) will be able to regulate the electricity sector within Nigeria without prejudice to the powers of the states to make laws and create electricity markets within those states and to regulate those markets.
The Act mandates how NERC can transition regulatory responsibilities from itself to state regulators when they are established. Until a state has passed its electricity market laws, NERC will continue to regulate electricity business exclusively carried out in those states.
For now, Lagos, Edo and Kaduna states already have electricity market laws and can start regulating their market. But for other states without such laws, NERC will regulate. NERC will still carry out cross-border regulations – generation, and transmission across states will still be regulated by NERC.
Role of lawmakers
The Act grants lawmakers the power to carry out oversight responsibilities and function over the NESI through its respective Committees on Power in the Senate and House of Representatives. This is to be carried out notwithstanding the supervisory powers of any government Ministry over government-owned enterprises or other entities operating in the Nigerian electricity supply industry.
Empowering renewable energy
Electricity generation licensees are obligated to meet renewable generation obligations as may be prescribed by NERC. Under the Act, electricity generating companies will be mandated to either generate power from renewable energy sources, purchase power generated from renewable energy or procure any instrument representing renewable energy generation.
The Electricity Act also mandates the imposition of renewable purchase obligations on distribution or supply licensees.
What you should know
The Act also states that anyone may construct, own or operate an undertaking for generating electricity not exceeding 1 megawatt (MW) in aggregate at a site or an undertaking for distribution of electricity with a capacity not exceeding 100 kilowatts (KW) in aggregate at a site, or such other capacity as NERC may determine from time to time, without a license.
This is good….I believe Nigeria would soon get there. The secrecy associated with electricity reform has gone FOREVER…
A president that keeps to promise is truly a hope for Nigeria.
This is beautiful to watch. Can’t wait for such transformations to come to life in our time.
Let’s keep it hopes high
This is a come development. I strongly believe that any government who is able to successfully resolve the mystery surrounding electricity in Nigeria is a government of the people and should be largely supported by all and sundry.
I can imagine how this loudable achievement would impact real estate in Nigeria.
We the good people of Ekakpamre community welcome this good gestures from Mr President. We hope delta state government will act quickly and pass electricity market laws to help them regulate the market leaving NERC out the running of our state power companies like Lagos and the others.
This is a good development. It will go a long way to solve power epilepsy in the country. Kudos to the the initiators of the bill and to Mr. President that signed it in to law.
Nice one
With such law Nigeria will soon leave the era of darkness to light
What then did Buhari signed?
Insecurity Bill, hunger bill and unemployment
Buhari didn’t sign the law , he simply passed it thru the law maker’s in July 2022..BAT has finally signed it into law, meaning that it has finally come into existence after it has been asserted to…Kudos to H.E.BAT, he has 1nce again done wat other past leaders failed to do….Nigerians will soon start celebrating the good deeds of this present govt under President Tinubu..
This is a welcome development. It will enhance growth in the power sector and if properly followed to the letter by individuals, private organisations and states in the federation the problem of electricity will be a thing of the past in Nigeria.
That’s rhe way to go!
This will be a real game changer for the Nigerian power sector.
A clearly good start.
This is a welcome development. I strongly believe that any government who is able to successfully resolve the mystery surrounding electricity in Nigeria is a government of the people and should be largely supported by all and sundry.
I can imagine how this loudable achievement would impact real estate in Nigeria. Our hope seems truly being renewed.
Does it mean Nigeria will have light like other countries?? Like Ghana , Cameroon and other places?? Or we should stop paying electricity bills😂😂😂
The main point of the act is that anyone can build, own, or operate an electricity generation project up to 1 megawatt or a distribution project up to 100 kilowatts without a license. This allows Nigerian households and businesses to produce their own solar electricity and sell any extra power to distribution companies. It’s a win-win situation: no estimated or actual bills from NEPA and they even pay you each month for the electricity they are forced by the Act to buy from you due to its renewable source.
If this doesn’t start a gold rush in solar in Nigeria, we don’t deserve the blessings from the sun.
Mr. President I can you are making a good steps that will soon improved Nigerian system of government. May God strengthen you.
This is a welcome development and certainly the way to go.
I think I understand the point Buhari revolution to Tinubu right now
I love the government for making things go well smoothly
This is a good way to tackle mostly the problems of generation, creation and distribution of electricity in Nigeria.It will also gives an avenue for investment and or other private stakeholders to employ more jobs to Nigerians.One other good thing is using renewable resources to generate electricity bound in the act my president signed.
I knew that this will be our best bet as a president.
More good news to come
May be that’s why they give us light since yesterday in my area Ogun state sagamu area 🙏🏾💡⚡⚡🙏🏾💡🙏🏾💯💯
The big issue rest on how common people will be able to affords stable electricity provided by private investors. We should be ready to pay more..
If this true, then Nigeria is on the path to greatness, a lot of companies ran away from Nigeria becos of problems with electricity. Many will come back and new ones will come in.Nigeria is the biggest market in Africa…this is good news
Laudable
This is great, solving electricity problem is a solution to many economic problems facing the country.
“ Talking do me no good, action does” I want to see it working before believing. I commend his innovative plans anyway.
This is good development in Nigeria, May Almighty Allah strengthen Mr President.
Why must Renewable be mandatory ? When it’s not a stable source nor cheap source of power when compared to other source which are even clean (gas) . Europe ,Asia and America are still burning coal as a huge source of energy
Amazing 😄 The future is bright for Nigeria’s renewable energy sector.
It’s a welcome idea putting it to action is what matters and if it’s workable/achievable.
This is a good development for Nigeria. Thank you Mr. President, i have always believed in God to change the epileptic situation of electricity in Nigeria. We will keep praying for you to put other things right for our great nation and to lay solid foundation for the nation. Thank you again and God bless you.
The law is useless on paper. The only way it can be useful is when all of you leave the key pad and think of how to generate electricity for yourselves and your communities. You don’t need licence to do this.
You don’t need license only if the power you generate doesn’t exceed 1 megawatt!
I love this statement!!!
That’s good development for Nigeria
Commendable Mr president. Keep signing and keep seeing that they are implemented because a law without enforcement is a wasted ink. Good luck
I am begging to like this president
.He is starting well !
The future is bright for Nigeria’s renewable energy secto ,mainly Solar power. India and Nigeria jointly can take initiative to produce Solar Power in Lagos, Edo and Kaduna states . And the good things is that Under the Act, states can issue licenses to private investors who can operate mini-grids and power plants within the state . This is a good development for Nigeria. Thank you Mr. Presiden .
With an installed solar capacity of over 63.3 GW, India is the 5th largest solar country in the world.
What about estimated nepa bill accumulated account that was not settled. How will it be reconciled.
BAT is our renewed hope