In a major policy shift aimed at breaking Nigeria’s long-standing power deadlock, President Bola Ahmed Tinubu has signed the Electricity Amendment Bill into law, officially empowering state governments to generate, transmit, and distribute electricity within their territories.
The groundbreaking legislation decentralizes the country’s electricity sector, marking a new era of subnational control over energy infrastructure.
States now have the legal authority to issue licenses for mini-grids, local generation, and distribution systems—effectively opening their doors to private sector investment and tailored power solutions.
While states with their own electricity regulatory commissions can now independently manage their energy affairs, the Nigerian Electricity Regulatory Commission (NERC) will retain oversight in states yet to establish their own regulatory bodies.
So far, seven states—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi, have assumed full regulatory control.
Lagos, Ogun, Niger, Plateau, and Anambra are reportedly advancing preparations to do the same in the coming months.
President Tinubu hailed the legislation as “a crucial reform for a more equitable and efficient energy sector,” highlighting its potential to drive industrial development, create employment, and expand access to electricity, particularly in underserved rural areas.
While energy experts have largely applauded the reform, they caution that implementation may be uneven. Many states, they say, must rapidly develop the institutional and technical capacity needed to regulate the sector effectively and ensure consumer protection.
Nonetheless, the new law is widely expected to accelerate the adoption of renewable energy, improve energy security, and give states the flexibility to meet local demand, offering hope for a brighter, more reliable future in Nigeria’s power landscape.
