In a pivotal move reshaping Nigeria’s energy landscape, President Bola Tinubu has officially enacted the Electricity Act (Amendment) Bill 2025. This groundbreaking legislation effectively removes electricity matters from the Federal Government’s exclusive jurisdiction, granting state governments significant autonomy over power generation, transmission, distribution, and regulation.
This landmark law fundamentally transforms the nation’s power sector by decentralizing control previously concentrated at the federal level. The amended Act authorizes states to independently manage electricity within their boundaries. This includes generating, transmitting, and distributing power, establishing state-level electricity markets and regulatory bodies, and independently licensing private investors for power plant and mini-grid projects without requiring federal consent.
The policy shift is anticipated to stimulate competition, attract vital private investment, and accelerate the expansion of electricity access, especially in rural, peri-urban, and underserved urban areas that have historically suffered from unreliable power supplies.
“This legislation marks a transformative chapter for Nigeria’s energy future,” declared President Tinubu during the signing ceremony. “States are now constitutionally empowered to ensure stable and efficient electricity provision for their constituents, thereby driving industrial growth and creating abundant job opportunities.”
The reform is projected to yield improvements in power supply and fuel accelerated industrial development, particularly in states that proactively establish robust electricity markets and infrastructure. However, the ultimate success of this decentralized framework hinges on the capabilities, political resolve, and regulatory preparedness of individual state governments to effectively implement the law and deliver tangible benefits to their citizens
