President Bola Ahmed Tinubu has approved the Electricity Act 2023 and signed it into law almost ten days after his inauguration ceremony.
The Electricity Act will be substituting the Electricity and Power Sector Reform Act 2005 and is believed to provide a foundation to guide the post-privatization phase of the Nigerian Electricity Supply Industry, NESI, and spir private sector investments.
Recall that the 9th National Assembly had previously passed the bill in July 2022, as a way to tackle the challenges of the power sector in the country.
Under the 2023 Electricity Act, the Nigerian Electricity Regulatory Commission, NERC, will be able to regulate the electricity sector in the country –without prejudgement from states’ authorities to make laws– and build electricity markets within those states and regulate them.
States will also be able to issue licenses to private investors who can run mini-grids and power plants within the state,
However, the Act prevents interstate and transnational electricity distribution.
