States’ Power Commissioners have formally rejected the proposed 2025 Electricity Act (Amendment) Bill, warning that it risks undermining recent reforms and placing unsustainable financial burdens on electricity consumers and state governments.
The strong objections were issued through a statement by the Forum of Commissioners of Power and Energy in Nigeria (FOCPEN), which represents state-level regulators and authorities charged with electricity market oversight.
The forum also warned that more than N5 trillion in unpaid electricity subsidies is crippling the nation’s power sector and threatening Nigeria’s energy reforms.
The group is also urging the National Assembly to abandon the proposed Electricity Act (Amendment) Bill, 2025, which they say would worsen both the financial and regulatory crisis in the sector.
In the petition signed by the commissioner of Power and Renewable Energy, Cross River State/chairman, FOCPEN, by Prince Eka Williams, and commissioner of Power, Renewable Energy and Transport, Benue State/ secretary, FOCPEN, Barr. Omale Omale, the forum expressed alarm that the new bill could force states to surrender their hard-won regulatory autonomy, increase investor uncertainty, and revive a damaging subsidy regime just as Nigeria is trying to phase out unsustainable energy subsidies.
The commissioners highlight that electricity subsidies reached N1.94 trillion in 2024 alone, while more than N5 trillion in total subsidies remain unpaid.
This massive unpaid debt, they argue, has made the sector unattractive to private investors and put the future of Nigeria’s electricity market at risk.
They warn that the proposed bill would deepen this debt burden, forcing electricity consumers to pay new surcharges to fund additional federal agencies and the Power Consumer Assistance Fund—even in states pursuing cost-reflective tariffs.
FOCPEN describes the bill as a “backdoor amendment” to the Constitution, saying it reverses key gains made since the Electricity Act 2023, which empowered states to develop and regulate their own electricity markets.
New clauses would subordinate state laws to federal ones and allow the Nigerian Electricity Regulatory Commission (NERC) to retain broad authority, even within state-controlled markets.
FOCPEN further raised concerns that these changes would undermine federalism, introduce overlapping and conflicting regulatory mandates, and result in higher tariffs for already-burdened consumers, worsening access and affordability.
Calling the bill “untimely and disruptive,” the Forum stresses that true reforms require meaningful consultation with the states, who are now leading electricity market development. They urged the National Assembly not to proceed with the proposed amendments and to ensure that any future changes are made in partnership with state governments to build a resilient, investor-friendly, and financially sustainable Nigerian power sector.
After a thorough review of the proposed amendments, FOCPEN declared the move as an unconstitutional and backdoor constitutional amendment.
They considered the proposed Electricity Act (Amendment) Bill, 2025, an attempt at a “backdoor amendment” of the 1999 Constitution of the Federal Republic of Nigeria (as amended) by seeking to reintroduce constraints and ambiguities that were expressly removed by the fifth alteration of the Constitution.
“In addition, several provisions of the amendment bill egregiously violate foundational principles of true constitutional federalism, and threaten the successful implementation of a decentralized electricity market.
“Notably, Amended Section 2 introduces a “non-conflict” clause that subordinates State laws to federal provisions, even within intra-state electricity markets.
“Amended Section 230 and new Sections 230A–C impose rigid timelines and conditions on States, effectively allowing NERC to retain overriding authority, even in areas where States have exclusive jurisdiction.”.
The Forum warned that the amendment bill, if passed, will create a constitutional conflict between the federal government and states, as well as legal and regulatory conflicts between federal and state regulators, undermining the principle of cooperative federalism and potentially inviting judicial challenges.
The FOCPEN added that this is coming at a time when the administration of President Bola Ahmed Tinubu is striving to end unsustainable and wasteful energy subsidies, the electricity amendment bill 2025 surprisingly seeks to entrench a subsidy regime in the power sector.
” It should be noted that electricity subsidies gulped N1.94 trillion in 2024 alone. The total accrued electricity subsidies of more than N5 trillion remain unpaid, crippling the power sector and making it unviable for private sector investments.
The amendment bill, if passed, will further exacerbate the financial burden on the federal government and states, undermining efforts to achieve a sustainable and self-financing power sector,” the group added.
The amendment bill proposes the creation of numerous federal institutions, agencies and Funds, whose operational and administrative costs are to be directly passed on to electricity consumers, thus resulting in higher electricity tariffs for consumers.
They stressed that imposition of additional financial burden on electricity customers already struggling with high electricity tariffs for Band A service is unacceptable, especially when states are actively pursuing cost-reflective tariffs tied to improved quality of service.
In addition, the bill specifies mandatory contributions from consumers and market participants to fund the Power Consumer Assistance Fund (PCAF).
Consumers, including those in states with cost-reflective tariffs, would bear the cost of subsidies through tariff surcharges, even in the face of widespread non-payment and market losses. By this provision, the amendment bill would also transfer over ₦5 trillion in unpaid subsidies to electricity consumers, worsening affordability and equity in electricity access.
“Inevitably, the amendment bill will hinder public and private sector investments particularly in State electricity markets, and stall the momentum of recent reforms by President Bola Ahmed Tinubu in the power sector,” the statement added.
In addition, the bill seeks to bestow upon NERC an overriding regulatory jurisdiction over electricity distribution, electricity distribution tariff design and implementation, and consumer protection within State electricity markets and centralize the regulation and enforcement of technical standards within state electricity markets under the NEMSA.
These provisions contravene sections 13 and 14 of the second schedule of the 1999
The Forum also noted that by virtue of the 5th alteration to the 1999 constitution (as amended) and the Electricity Act 2023, states have exclusive constitutional and regulatory jurisdiction over electricity distribution, whether connected, reliant or not connected to the national grid, within their territories.
They said total lack of engagement and consultation with states, who are now primary drivers of electricity sector development in the drafting of the amendment bill, was a serious concern, adding, “Effective and sustainable reforms require collaborative efforts between federal and sub-national governments.”
The amendment bill further threatens to dismantle the progress and positive reforms initiated by the Electricity Act 2023, which has been widely hailed as a pivotal step towards a more reliable and efficient power sector. This untimely amendment risks undermining President Bola Ahmed Tinubu’s key policy achievements in the energy sector.
FOCPEN said it firmly believed that this was not the right time for an amendment to the Electricity Act 2023, as the Act was still in its early implementation phase.
In addition, it said that several states had commenced the process to operationalize their electricity laws and create viable state electricity markets and called on the National Assembly to halt further consideration of the bill.
Noting that Electricity is a Concurrent legislative matter under the 1999 Constitution, the Forum advocated that any future considerations for an amendment of the Electricity Act 2023, must be preceded by broad-based consultation and collaboration with state governments to ensure that federal legislation complements, rather than undermines, nascent state electricity markets.
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