The Electricity Act has just been signed into law by His Excellency, President Bola Ahmed Tinubu.
History is being made by President Bola Ahmed Tinubu as he signed the Electricity Act into Law today Friday, 9th June, 2023 in his second week in office. Considering how he fought, as the Governor of Lagos State, for the State to Generate Electricity and supply her citizens over two decades ago, but was deprived by the fact that Electricity, as it was then, remained in the concurrent list of the constitution of the Federal Republic of Nigeria but with a caveat that meant only the Federal Government could regulate & legislate on grid connected electricity supply systems. This therefore combines dramatic irony and tragicomedy in one go.
The 1999 constitution of the Federal Republic of Nigeria (CFRN) puts Electricity in the concurrent list but with a caveat implying that only the Federal Government (FG) can legislate, and regulate on matters involving the generation, transmission, and distribution of electricity in areas within any state in Nigeria where the national grid system already exists. This limits the States to the generation, transmission, and distribution of electricity in areas not already connected to the national grid, notably the rural areas.
This provision of the constitution had to be backed by an Act known as the Electric Power Sector Reform Act (EPSRA) 2005.
To further deepen the electricity reform in Nigeria, especially in view of the dismal performance of the privatization exercise so far, it became expedient to allow States to regulate, generate, transmit, and distribute electricity to improve the experience of consumers within their boundaries. For this to happen, two things must take place first. The 1999 constitution must be amended and EPSRA 2005 repealed.
The 9th Assembly successfully passed a bill to amend the constitution in line and this was assented to by President Muhammadu Buhari on 17th of March, 2023.
Please read my article on same below:
The Electricity Act, now signed into law today, concludes the process, by repealing the EPSRA 2005, providing a comprehensive legal and institutional framework for the post-privatized electricity supply industry in Nigeria (The Electricity Act, 2023).
As someone who has keenly followed the power sector in Nigeria for over forty years, what stands out the most about this step is that the 1979 constitution allowed States to make laws, generate, transmit and distribute electricity within the state but somehow, this right, removed in the 1999 constitution, is now being brought back in 2023, 44 years later.
This is the story of the Nigerian Power Sector.
Idowu Oyebanjo, PhD
20 comments
I have read this article over and over again all I can say is that it’s very insightful. Nigeria is blessed with experts in every areas. Well done sir!
Thanks for the encouragement, and for reading it over and over again. Something good is about to happen!
Good write up ID CALCULUS
God will increase u in wisdom & knowledge.
Thanks sir.
I believe this decision is a right step in the right direction. We just hope the decision would also bring solution to the current high electricity tariff.
Ultimately
Whoa! This is very welcome…
Thanks
Interesting. De ja vu! The 1979 constitution answered the perennial challenge of today. Thank you for this insight.
Like we have retraced our steps, reversing 43 backward steps made by the military. Hopefully, this fixes the foundational problem, we must now build on it methodically. Experts must be involved.
Thanks so much for your usual insight. I love the aspect of professionalism that you highlighted.
Implementation of these amendment which creates competition among states will by far improves electricity on a long run as a whole to Nigeria so far is well-managed by experts to fix the root problem of electricity and also to provide alternative way to states that may feels the effect way too much. Right decision to achieve a certain goal. Kudos to you sir!!
Thanks for your encouragement
I have gone through it and I must say is a nice insight if the federal government will not leave it untreated. Not just signing into law then seat back without any physical implementation of this law.
Yes, is a welcome idea for a state to generate, transmit and distribute electricity to her consumers without depending on national grid. By so doing, this Will help small and medium scale businesses to held their potential income thereby reducing the usual say of “UP NEPA when the power comes up and GOD PUNISH NEPA when the power is interrupted”.
TAX: This insight will increase revenue income in the state thereby increase state economy growth.
EMPLOYMENT: Of course by so doing, the rate of unemployment will reduce. Little or more experts will be engaged in the system.
IN CONCLUSION:
For the state to generate, transmit and distribute electricity will be a better development to our nation if well guided and implemented ( Not abandoned).
Thank you sir.
Thanks a lot. Very useful points on implementation.
This is a positive move, for states to have the capacity to make laws, generate ,transmit and distribute will go a long way to fix our epileptic power model. i must commend BAT the president…. Nigeria will attain its greatness. This move will go a long way even to reduce unemployment.
Good one Dr sir….. please lets have more sir
Thanks for the encouragement
This new law is very welcome indeed especially this period where fuel subsidy has been removed and powering generator is nearly impossible. My prayer is that the states manage this new power that has finally returned to them properly to reduce the pain and suffering of the people they govern. Electricity is very important and we are very grateful that this law passed.
Thanks as always for an insightful write up
Thanks sis
Kudos for the write-up. I personally believe this is long over due. When the President was Lagos State governor and he brought the ENRON project in 1999 many Lagosian were hopeful of better electricity but the rest is history. Signing this bill is a welcome idea as it bring hope for many artisans who has been forced to get other job to survive.
Thanks for the review.