Tinubu Signs Bill Allowing States to Take Full Charge of Their Electricity
- Nigeria has taken a bold step towards energy reform by decentralising its power sector
- With the signing of the Electricity Amendment Bill, states can now generate, transmit, and distribute electricity independently
- This new law promises greater energy access, private investment, and a boost for renewable power nationwide
In a landmark move to decentralise the nation’s power sector, Nigerian states now have the authority to oversee electricity generation, transmission, and distribution within their jurisdictions.
The shift follows the signing of the Electricity Amendment Bill into law by President Bola Tinubu in 2024.
Source: Twitter
Electricity amendment act empowers states
The Electricity Amendment Act marks a significant reform in Nigeria’s energy sector, handing over control from the federal government to individual states.
Under the new legislation, states are legally empowered to license private investors to operate mini-grids and power plants, opening the door for increased private sector involvement and competition.
According to BBC:
“The Act gives states the authority to generate, transmit, and distribute power within their borders, shifting control from the federal government to the states. It allows states to license private investors to operate mini-grids and power plants within their jurisdiction.”
The decentralised model is expected to accelerate electrification in rural, peri-urban, and urban communities that have long remained underserved.
Renewable energy incentives boost clean power generation
A pivotal feature of the Act is its strong push for sustainability. Electricity generating companies are now incentivised to either produce power from renewable energy sources or purchase it from others who do.
This aligns with Nigeria’s broader goals to diversify its energy mix and reduce dependence on fossil fuels.
Improved energy access on the horizon
With the law now in effect, stakeholders anticipate significant improvements in electricity access nationwide.
Full implementation of the Act is seen as a crucial step towards addressing chronic power shortages and driving economic development across states.
The reform depicts a new era of state-level energy autonomy and renewable investment in Nigeria.
Source: Legit.ng
