Senator Gabriel Suswam, the former Chairman of the Senate Committee on Power, has raised significant concerns over what he regards as an alarming endeavor to completely overhaul the Electricity Act 2023 amidst its current amendments. He cautioned that certain proposed modifications could pervert the foundational aims of the reform.
Suswam also alerted that Nigeria stands to face stagnation in its electricity reform journey if the Federal Government neglects to foster a conducive atmosphere for investors and address the daunting funding obstacles that hinder the sector’s growth.
While addressing attendees at the 20th anniversary celebration of the Nigerian Electricity Regulatory Commission in the heart of Abuja on Thursday, Suswam asserted that some of the amendments being deliberated upon at the National Assembly were excessively broad and posed a threat to the essential structure of this pivotal legislation.
He further pointed out that the nation’s monetary and fiscal strategies were constricting private investment and compromising the overarching objectives of the Electricity Act 2023.
The celebration, aptly themed Fortifying Power Sector Governance for a Sustainable Tomorrow, was intended to honor and evaluate two decades of regulatory advancements within Nigeria’s power domain.
“The proposed amendments I’ve encountered are overly extensive. Many do not directly correspond to the identified problematic areas,” Suswam declared.
He expressed concern that a handful of these provisions could significantly alter the purpose of the Electricity Act, which was crafted to enhance the power sector, decentralize oversight, and attract private funding.
Suswam added that the Electricity Act was established to grant the NERC autonomy and bolster its supervisory role in the power industry, urging the commission to safeguard its independence from political meddling.
“What is unfolding at the National Assembly resembles a new legislative framework. It is not merely an amendment, and that is my apprehension. NERC needs to oversee developments within the sector and uphold its autonomy. This was the very essence of the law we enacted,” he affirmed.
The senator elucidated that while some sections of the law may necessitate revision, any amendments should be targeted and precise rather than sweeping modifications that jeopardize the Act’s core principles.
“If particular areas are problematic, they should be resolved directly. However, altering extensive segments of the Act equates to rewriting the constitution; it undermines the very foundation,” he remarked.
Suswam’s statements underscore a rising friction between lawmakers and regulatory bodies regarding the speed and extent of changes to the Electricity Act 2023, a legislation that decentralized the sector, empowered states to regulate electricity, and sought to entice private investment.
The former Governor of Benue State recounted the evolution of Nigeria’s electricity reforms, tracing it from the unbundling of the National Electric Power Authority during the Olusegun Obasanjo presidency to the landmark 2023 Electricity Act, which decentralizes the power sector and authorizes states to independently generate, transmit, and distribute electricity.
“When we undertook the unbundling of NEPA and privatized the sector, our aim was to foster efficiency. We believed that, similar to telecommunications, this privatization would lead to broader access to electricity for many Nigerians. Regrettably, the complexities of the power sector prove to be far more technical than those of the telecom sector,” he lamented.
