Nigerian subnational governments have demanded an immediate halt to the ongoing amendment of the recently passed Electricity Act (EA).
Coming under the Forum of Commissioners of Power and Energy (FOCPEN), the states decried what they described as the lack of consultation by the federal government and the industry regulator, the Nigerian Electricity Regulatory Commission (NERC), concerning the extant matter.
They argued that if the move succeeds, it will see the transfer of over N5 trillion in subsidies from the federal government to power consumers.
In a lengthy statement released by the Chairman of the Forum, Mr Eka Williams, who doubles as the Commissioner of Power and Renewable Energy, Cross River State and its Secretary, Mr Omale Omale, who is the Commissioner of Power, Renewable Energy and Transport, Benue State, the group expressed profound surprise and concern regarding the proposed Electricity Act (Amendment) Bill, 2025.
Recall that this comes almost two years since the Electricity Act 2023 was signed into law, and since then, some states established and operationalise their electricity markets under the new decentralised framework.
Business Post reports that around 16 states having passed their electricity laws since the enactment of the Electricity Act by President Bola Tinubu..
They argued that the amendment, if successful, would strip them of the powers conferred by the existing law.
“The amendment bill proposes the creation of numerous federal institutions, agencies and funds, whose operational and administrative costs are to be directly passed on to electricity consumers, thus resulting in higher electricity tariffs for consumers. The imposition of additional financial burden on electricity customers already struggling with high electricity tariffs for Band ‘A’ service is unacceptable, especially when states are actively pursuing cost-reflective tariffs tied to improved quality of service.
“In addition, the bill specifies mandatory contributions from consumers and market participants to fund the Power Consumer Assistance Fund (PCAF). Consumers, including those in states with cost-reflective tariffs, would bear the cost of subsidies through tariff surcharges, even in the face of widespread non-payment and market losses. By this provision, the amendment bill would also transfer over N5 trillion in unpaid subsidies to electricity consumers, worsening affordability and equity in electricity access,” the commissioners argued.
FOCPEN noted that the absence of any prior consultations with state governments, or their relevant commissioners and state electricity regulatory bodies during the drafting and presentation of the crucial amendment bill on the floor of the senate.
According to the commissioners, the unilateral approach undermines the spirit of cooperative federalism and threatens to reverse the gains made in decentralising Nigeria’s electricity sector.
The group described the move as an unconstitutional overreach and backdoor constitutional amendment, adding that the federal government was seeking to reintroduce constraints and ambiguities that were expressly removed by the fifth alteration of the Constitution.
“The amendment bill, if passed, will create a constitutional conflict between the federal government and states, as well as legal and regulatory conflicts between federal and state regulators, undermining the principle of cooperative federalism and potentially inviting judicial challenges,” they emphasised.
The state governments maintained that the electricity amendment bill 2025 surprisingly seeks to entrench a subsidy regime in the power sector, arguing that it will further exacerbate the financial burden on the federal government and states, undermining efforts to achieve a sustainable and self-financing power sector.
They stressed that the amendment bill, if passed, will create policy, legal and regulatory conflicts between federal and state agencies/regulators, significantly increasing regulatory uncertainty and risks for both federal and state-level investors in the electricity market.