The Senate on Tuesday debated a bill seeking to amend the Electricity Act, 2023, with fresh proposals aimed at resolving legal, financial, and operational challenges plaguing the country’s power sector.
The Electricity Act (Amendment) Bill, 2025, sponsored by Senator Enyinnaya Abaribe (Abia South), was read for the second time on the floor of the Senate.
In his lead debate, Abaribe noted that the proposed amendments are part of broader efforts to rescue the Nigerian Electricity Supply Industry (NESI) from “imminent collapse.”
According to the lawmaker, the amendments are necessary to address critical issues that have emerged since the implementation of the 2023 Act.
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The bill proposes 28 new clauses targeting key reforms such as criminalisation of electricity infrastructure vandalism, improved regulatory coordination between federal and state governments, and clarification of transitional provisions for state-level electricity regulation.
“The current state of the NESI has been an issue of concern to this 10th Senate and even previous Senates,” Abaribe said.
“With a crippling debt crisis running into trillions of Naira, the Nigerian power sector is hanging on a cliff and requires immediate and drastic action.”
The bill proposes to strengthen coordination between national and sub-national regulatory bodies to reduce legal conflicts; address sectoral financing constraints amid mounting debts, and criminalise vandalism of critical electricity infrastructure.
The bill further seeks to clarify the transition of regulatory powers to state governments, especially with respect to the national grid; establish a clearer legal framework for host community engagement by licensees; improve industrial relations by balancing labour rights with essential service obligations; and redefine and operationalise the Power Consumer Assistance Fund as a replacement for the current unsustainable subsidy regime.
Abaribe explained that clauses 2 through 12 of the bill aim to eliminate ambiguities in several sections of the principal Act to ensure smoother implementation. Clauses 13 to 17 address funding and operations of agencies such as the National Hydro Power Producing Areas Development Commission (N-HYPPADEC) and the Nigerian Electricity Management Services Agency (NEMSA).
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Notably, the bill introduces provisions to establish the Forum of Electricity Regulators, formally recognise the National Electric Power Policy Council, and define obligations between host communities and electricity licensees.
Abaribe assured lawmakers that the bill would not impose additional financial burden on the Federal Government, noting that no financial compendium is attached in compliance with Senate Standing Orders.
“This Bill should be seen as one of the required legislative interventions to support reform measures aimed at repositioning the power sector for optimal performance,” he added.
The bill was supported by senators Adamu Aliero, Osita Ngwu, Yinus Akintunde, Fatai Buhari, amongst others, while Senator Solomon Adeola expressed caution and asked that the Senate liaise with the executive for a holistic overhaul of the power sector.
The bill was thereafter passed for second reading and has been referred to the Senate Committee on Power for further legislative action.
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