A fresh battle over who controls Nigeria's electricity is heating up. State electricity regulators from 16 states have accused the National Assembly of trying to take back powers that were already given to states under the Constitution and the Electricity Act 2023.
In a strongly worded memorandum submitted to the Senate Committee on Power and obtained by our correspondent on Tuesday, the regulators said the proposed Electricity Act (Amendment) Bill 2026 could reverse one of the biggest reforms in Nigeria's power sector.
The regulators argued that the bill doesn't aim to strengthen the electricity market. Instead, they said, it seeks to restore extensive federal oversight over matters that have constitutionally become state responsibilities.
The concerns were contained in a letter dated May 26, 2026, addressed to the Chairman of the Senate Committee on Power. It was signed by chairmen and chief executives of electricity regulators from Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo, and Plateau states.
The regulators said they'd taken advantage of the Electricity Act 2023 to start building sub-national electricity markets and had already engaged investors based on the framework the law created.
They noted that they'd earlier met with the Senate committee and were asked to consolidate their concerns into a single memorandum for lawmakers, the Nigerian Electricity Regulatory Commission (NERC), and other stakeholders.
The letter stated: “We represent State Regulatory Commissions/Bureaus that have taken advantage of the Electricity Act 2023 to commence the development of our sub-national electricity markets and sectors. We're grateful for the audience you granted us to raise concerns on the ongoing consideration of the proposed Amendment Bill 2026 to the Electricity Act 2023. As agreed during our discussion, we've collated and consolidated the comments into one document which is hereby attached for the consideration of the Senate and House Committees on Power, NERC and other stakeholders.”
The state regulators said they'd identified 17 contentious provisions in the proposed amendments that they believe could undermine the constitutional powers already granted to states in the electricity sector.
According to the regulators, the areas of disagreement include the authorisation of State Houses of Assembly to legislate on electricity matters, the supremacy of state laws within state electricity markets, and provisions seeking to retain federal control over all activities connected to the national grid.
Other disputed clauses relate to restrictions on states’ participation in the wholesale electricity market, matters concerning the Nigerian Wholesale Electricity Market, the authority of states over independent transmission and distribution networks, and the establishment and administration of the Power Consumers Assistance Fund.
The regulators also raised concerns over the proposed expansion of the powers of the Nigerian Electricity Management Services Agency, the structure and decisions of the Forum of Electricity Regulators, and the provision granting NERC final administrative appellate jurisdiction on certain issues arising within the forum.
They further opposed provisions designating electricity generation, transmission, distribution and supply as essential services, as well as clauses dealing with government-owned enterprises as licensees and obligations to host communities.
Additional areas of contention include the regulation of intra-state electricity matters that may have implications for the national grid, the imposition of timelines and phased conditions for states transitioning into independent electricity markets, and proposed federal oversight on consumer protection, anti-trust measures and tariff design within state electricity jurisdictions.
The regulators argued that the disputed provisions require further consultation to ensure that the decentralisation objectives of the Electricity Act aren't weakened by subsequent amendments.
“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,” the memorandum concluded.