President Bola Tinubu has signed the Electricity Act 2023 into law.
The electricity act, which was first passed under the administration of former president Muhammadu Buhari in July 2022, will replace the electricity and power sector reform act of 2005.
It will bring about the de-monopolization of Nigeria’s electricity generation, transmission, and distribution of electricity at the national level and empower states, companies, and individuals to generate, transmit, and distribute electricity.
The Act will also provide a framework to guide the post-privatization phase of the Nigerian Electricity Supply Industry (NESI).
Issuance of licenses by states to private investors who can operate mini-grids and power plants within the state is permitted by the act, however, it prevents interstate and transnational electricity distribution.
In addition, the act mandates how Nigerian Electricity Regulatory Commission (NERC) can transition regulatory responsibilities from itself to state regulators when they are established.