Electricity Act 2023 Needs Consolidation, Not Another Federal Regulator

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The Electricity Act (Amendment) Bill, 2025 sponsored by Hon. Afam Victor Ogene seeking to establish a National Authority for Renewable Energy (NARE) has passed second reading. While the intention to strengthen renewable energy is commendable, but creating another federal authority at this time is not in the national interest.

The position canvassed by the Managing Director of the Rural Electrification Agency, Abba Aliyu, is more sustainable path and the Federal House of Representatives should align with it.

First, it will create regulatory confusion and fragment in the electricity market.

Nigeria is just implementing the Electricity Act 2023, which has allowed states to establish their own electricity regulatory commissions. And we are still managing the delicate transition between NERC and state regulators. Introducing another federal regulator organized around a technology - renewable energy - will creates a new axis of jurisdiction. As REA rightly argued, a single project may now need to engage NERC, a State Commission, REA, and the proposed NARE. That is not simplification, it is fragmentation. It will not produce one additional megawatt.

Second, it will disrupt projects and plans already on ground.

REA and the Rural Electrification Fund currently have a pipeline of mini-grid, off-grid and solar projects under the National Electrification Strategy, the e-HEART project, DARES and other donor-backed programmes. Transferring 40% of the Rural Electrification Fund to a new agency that does not yet exist will stall ongoing procurement, contradict approved plans, and delay electrification of unserved and underserved communities.

Third, it will scare investors and states.

Investor confidence thrives on regulatory clarity. When developers are uncertain about who approves tariffs, licensing and grid connection, financing cost will also goes up. That cost is ultimately passed to Nigerians. States that have just taken over their markets also need clarity, not another federal authority claiming renewable energy functions.

What Nigeria needs is not a new agency, but strengthening of existing institutions. REA should be empowered to continue driving off-grid expansion, NERC should continue as the central regulator, while states regulate within their domains. The House should therefore maintain the current framework, harmonize functions where there is overlap, and avoid creating a parallel bureaucracy that will increase cost of governance.

The goal is more connections, more megawatts and more private investment - not more authorities.


From: Office of the Honourable Commissioner for Power and Renewable Energy, Niger State 

A.B Makama, Media Strategist





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