President Bola Ahmed Tinubu has signed into law the Electricity Amendment Bill, a landmark legislation that grants Nigerian states the power to generate, transmit, and distribute electricity within their boundaries.
The new law is aimed at decentralising Nigeria’s electricity sector, giving states greater control over their energy infrastructure to boost power supply, encourage private investment, and address long-standing challenges in access and reliability.
Under the legislation, states can now issue licenses to investors for mini-grids, local generation, and distribution networks.
However, the Nigerian Electricity Regulatory Commission (NERC) will continue to oversee electricity operations in states that have not yet established their own regulatory authorities.
Seven states: Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi, have already taken over regulatory responsibilities, while others including Lagos, Ogun, Niger, Plateau, and Anambra are preparing to follow suit in the coming months.
Tinubu described the bill as “a vital step towards a fairer and more efficient electricity market,” noting that it would help create jobs, stimulate industrial growth, and expand access to power, especially in rural communities.
Industry experts have welcomed the reform but also urged caution, warning that many states may need to build the technical capacity and institutional frameworks required for effective regulation and consumer protection.
The new law is expected to open the door for more renewable energy projects and allow states to better respond to local electricity demands, ultimately improving energy security across the country.