The state regulators warn that the 2026 Electricity Bill threatens multi-billion-naira investments
Electricity regulators from 16 states in Nigeria have opposed an ongoing move by the National Assembly to amend the1999 Constitution and the Electricity Act 2023, especially in the area of control of the electricity markets across the states.
The state regulators accused the National Assembly of attempting to remove regulatory powers already granted to them under the 1999 Constitution and the Electricity Act 2023.
In a jointly signed memorandum sent to the Senate Committee on Power, the sub-national regulators warned that the proposed Electricity Act (Amendment) Bill 2026 represents a regressive attempt to restore absolute federal oversight, threatening to derail the most significant energy reforms the country has seen in over two decades.
The strongly worded petition, dated May 26, 2026, and addressed to the Chairman of the Senate Committee on Power, was signed by Chief executives and chairmen of electricity regulatory commissions from Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo, and Plateau states.
The regulators noted that following a previous meeting with the lawmakers, they were requested to consolidate their operational grievances into a unified brief for the consideration of the National Assembly, the Nigerian Electricity Regulatory Commission (NERC), and other key sector stakeholders.
According to the state agencies, they have already taken extensive advantage of the Electricity Act 2023 to develop independent, sub-national electricity markets, securing critical investor commitments based on the legal protections of the current framework.
They argued that a total of 17 contentious provisions within the proposed 2026 amendment bill directly undermine the constitutional division of powers. If passed, the regulators contend the bill will abruptly halt ongoing state-level investments and force Nigeria to retain a highly centralized operational model that has failed to improve power availability or per capita energy consumption for twenty years, despite escalating federal debt.
At the center of the legal dispute is the source of legislative authority over regional power grids. The state regulators described portions of the new bill as a shocking misconception of Nigerian constitutional law, arguing that the National Assembly is erroneously acting as though it delegates power to State Houses of Assembly.
The letter emphasised that states derive their legislative autonomy over internal electricity markets directly from the Constitution via the Fifth Alteration, and any attempt by the federal legislature to limit, phase, or redefine those powers through ordinary legislation represents an unconstitutional overreach.
Part of the Memorandum reads: “A review of the Bill suggests that the general intention is to reverse the devolution of legislative, governance and regulatory powers over electricity matters that occur solely within the respective states to the state governments, in favour of a reconsolidation of powers at the federal level, with the Nigerian Electricity Regulatory Commission retaining full supervisory powers over the market.
“Effectively, it appears that the intention of the Bill is that Nigeria should continue with the same regime that, for 20 years, has not led to any significant increase in power availability or per capita consumption for Nigerians, despite ever-increasing (and unsustainable) federal debt.”
The multi-state coalition identified several highly disputed clauses in the amendment bill, including provisions aimed at retaining strict federal control over all activities touching the national grid, restrictions on state participation in wholesale electricity trading, and the expansion of the powers of the Nigerian Electricity Management Services Agency (NEMSA).
Furthermore, the regulators vehemently rejected proposals that would grant NERC final administrative appellate jurisdiction over state-level regulatory decisions.
They insisted that NERC and state commissions maintain equal standing within their respective constitutional boundaries, meaning the federal agency cannot arrogate to itself quasi-judicial authority over independent state regulators.
The state bureaus also opposed provisions declaring all aspects of electricity generation, transmission, and distribution as “essential services” across both tiers of government, viewing it as a backdoor strategy to expand NERC’s jurisdiction into state tariff design and consumer protection frameworks.
Similarly, they argued that decisions regarding consumer subsidies, host community obligations, and administration of the Power Consumers Assistance Fund should remain local concerns wherever retail supply has transitioned to state oversight.
Instead of top-down federal legislation, the state regulators advocated a mutually negotiated Memorandum of Understanding to handle inter-state transmission coordination and grid connectivity.
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This ensuing regulatory friction underscores deep systemic tensions regarding the future landscape of the Nigerian Electricity Supply Industry.
Since the 1999 Constitution was amended to remove electricity from the Exclusive Legislative List, pioneering states like Lagos, Enugu, Ekiti, Ondo, and Edo have advanced to varying stages of implementing their independent electricity reform programmes.
While energy experts view this decentralization as a vital mechanism to unlock private capital and upgrade infrastructure, the legislative trajectory in Abuja threatens to reverse these gains, leaving the future of Nigeria’s power sector hanging precariously between localized commercial expansion and centralized federal dominance.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X