Sixteen State Electricity Regulatory Commissions (SERCs) have opposed the Electricity Act Amendment Bill 2026, warning that it could roll back the decentralisation of Nigeria’s power sector and return the industry to years of regulatory confusion.
In a joint submission sent to the Senate Committee on Power and dated May 26, 2026, the regulators argued that the proposed changes would weaken the authority of state governments in electricity regulation.
The letter was signed by chairmen and chief executives of commissions in states including Lagos, Abia, Anambra, Edo, Enugu, Ogun, Oyo, and others.
According to them, the amendment appears designed to recentralise control over electricity matters that the 2023 Electricity Act and the constitution had already assigned to states.
They warned that this would undermine reforms that allowed subnational governments to regulate electricity within their territories.
The regulators argued that the bill contradicts constitutional provisions and misinterprets the division of legislative powers between the National Assembly and State Houses of Assembly.
They maintained that only constitutional amendments, not federal legislation could alter those powers.
They also faulted provisions in the bill that would remove protections preventing federal laws from overriding state electricity legislation.
According to the SERCs, such decisions fall within judicial interpretation rather than legislative authority.
The commissions further warned that the amendment could threaten over $1 billion in ongoing investments in the power sector, saying investors had already committed funds based on the decentralised framework introduced by the 2023 Act.
They expressed concern that provisions limiting state oversight of grid-connected generation and distribution would reduce subnational authority and weaken electricity market reforms.
On market regulation, the SERCs objected to clauses giving the federal regulator expanded control over wholesale electricity transactions, even where power is generated and consumed within a single state.
They argued that such responsibilities should remain within state jurisdiction.
The regulators also criticised sections removing state powers to license mini-grid operators and independent distribution systems operating entirely within state boundaries, insisting that such activities fall under state electricity laws.
They further opposed provisions expanding federal control over tariff-related funds, saying pricing and consumer supply issues should be handled at the state level in line with the decentralised framework.
On governance structure, the SERCs rejected the creation of a centralised forum that would give the federal regulator final authority in disputes involving state regulators, arguing that it conflicts with constitutional provisions on judicial powers.
While acknowledging the need for coordination between federal and state regulators especially in transmission operations, they insisted that cooperation mechanisms, rather than centralisation, are the proper way forward.
The commissions warned that reversing the current decentralised model could discourage private investment, create legal uncertainty, and undermine recent progress made under state electricity laws enacted by several states, including Lagos, Edo, and Taraba.
They urged lawmakers to retain the existing framework, arguing that Nigeria’s power sector would benefit more from structured collaboration than a return to full federal control.
