In a landmark move, President Bola Ahmed Tinubu has signed the Electricity Act (Amendment) Bill 2025 into law, revolutionizing Nigeria’s power sector governance. This historic legislation devolves electricity generation, transmission, distribution, and regulation from the Federal Government to state governments, empowering them to manage their power needs independently.
Ostensibly, by removing electricity from the Exclusive Legislative List, states now have the constitutional authority to provide stable and efficient electricity to their residents, fostering industrialization and job creation.
This bold reform marks a significant shift in Nigeria’s energy landscape, enabling states to develop independent power projects tailored to their local energy needs, including renewable and off-grid solutions. With the new law, states can license private investors to operate power plants and mini-grids without federal approval, opening the door for increased private sector involvement and competition. The decentralization of power sector governance is expected to accelerate electrification in rural, peri-urban, and urban communities that have long remained underserved.
The impact of this legislation will be far-reaching, with states now responsible for ensuring reliable power supply to their citizens. Governors will be held accountable for the electricity situation in their states, and residents can expect improved power supply and more efficient electricity governance.
However, this development is likely to spark healthy competition among states to deliver uninterrupted electricity to their people, driving innovation and investment in the power sector.
Seven states have already assumed full regulatory control, and others are expected to follow suit. Lagos, Ogun, Niger, Plateau, and Anambra are reportedly advancing preparations to take charge of their power sectors, like in Imo State where Orashi Consortium is doing the same. The Nigerian Electricity Regulatory Commission (NERC) will retain oversight in states yet to establish their own regulatory bodies.
The Electricity Act (Amendment) Bill 2025 is a game-changer for Nigeria’s power sector, offering a new era of state-level energy autonomy and renewable investment. With the potential to boost economic growth, create jobs, and improve living standards, this legislation is a significant step towards addressing Nigeria’s chronic power challenges.
As Nigeria embarks on this new journey, the success of the power sector reform will depend on effective implementation, regulatory clarity, and strong institutional capacity at the state level. With the right approach, this bold reform could light up Nigeria, literally and economically, and drive the country towards a brighter future.
Hon Emma Nnadi, writer, editor and political affairs analyst, hails from Inyishi Ikeduru in Imo State
