Tinubu signs Electricity bill into law

President Bola Ahmed Tinubu has signed another bill into law, which will become the second bill Tinubu will sign into law as president.

Daily Champion reports that the second bill signed into law by Tinubu as president is the Electricity Act 2023.

The Electricity Act 2023 allows the de-monopolization of Nigeria’s electricity generation, transmission, and distribution of electricity at the national level.

It also empowers States, companies and individuals to generate, transmit and distribute electricity.

The Electricity Act replaces the Electricity and Power Sector Reform Act of 2005. It was initially passed by the National Assembly in July 2022.

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.

Electricity generation licensees are obligated to meet renewable generation obligations as may be prescribed by NERC.

The Electricity Act also mandates the imposition of renewable purchase obligations on distribution or supply licensees.

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.