In a move hailed as a turning point for Nigeria’s energy sector, President Bola Ahmed Tinubu has signed the Electricity Amendment Bill into law, officially granting states full autonomy over electricity generation, transmission, and distribution within their territories.

The newly signed legislation removes electricity from the Exclusive Legislative List and places it on the Concurrent List, empowering individual state governments to independently regulate and license operators within their power markets.

“This is a bold and necessary step toward a more stable, inclusive, and efficient electricity supply system across Nigeria,” said Energy Analyst Michael Adewale.

What the Law Changes:

States can now create and regulate their own electricity markets.

Private investors and mini-grid operators can be licensed at the state level.

The bill builds on reforms introduced in the 2023 Electricity Act and is expected to attract new investments, promote renewable energy development, and address chronic electricity shortages that have plagued Nigeria for decades.

States Already Taking Charge

At least seven states—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi—have already begun setting up their regulatory commissions and frameworks. Lagos, Ogun, Plateau, and Niger are also preparing to follow suit, with expectations of launching localized electricity models by early 2026.

Energy experts believe this move will accelerate Nigeria’s quest for universal electricity access and reduce the load on the national grid, which has suffered frequent collapses in recent years.

“It’s about time states had the power to power themselves,” said NERC Chairman Sanusi Garba.

By Erewunmi Peace