President Tinubu signs Electricity Act 2023 into law

President Bola Ahmed Tinubu has signed the Electricity Act 2023 just ten days after taking office.

The Electricity and Power Sector Reform Act of 2005 will be replaced by the Electricity Act.

It is anticipated that it will offer a framework to direct the Nigerian Electricity Supply Industry's (NESI) post-privatization phase and promote private-sector investments.

Remember that the 9th National Assembly first became effective in July 2022?

The problematic power sector in Nigeria is the context for the development.

The law assures that there is no longer a national monopoly on the production, transmission, and distribution of electricity in Nigeria and gives states, businesses, and private citizens the authority to do so.

According to the Act, states may grant licenses to private investors so they can run power plants and mini-grids within their borders. However, the Act forbids the distribution of power over state and international borders.

According to the Electricity Act of 2023, the states' legal authority to enact legislation, establish electricity markets within those states, and control those markets will not be affected by the Nigerian Electrical Regulatory Commission's (NERC) ability to oversee the country's electrical industry.

The Act specifies how NERC can delegate its regulatory duties to state regulators once they are constituted. Until a state passes legislation governing its power market, NERC will continue to oversee all electricity-related transactions made in those states.

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