From Adesuwa Tsan, Abuja
The Senate has passed a bill seeking to reposition the power sector for optimal performance by clarifying regulatory roles between the Federal and State governments, criminalising the vandalism of electricity infrastructure, introducing a targeted subsidy framework, and defining legal obligations to host communities through a second reading.
It would mark a major shift in how Nigeria governs, finances, and protects its electricity sector, with benefits for consumers, investors, and state governments alike.
Sponsored by Enyinnaya Abaribe, the bill seeks to cure structural and legal deficiencies that have plagued the Nigerian Electricity Supply Industry (NESI) since the implementation of the Electricity Act 2023, which liberalised the sector and decentralised electricity generation and distribution.
Leading the debate at plenary, Abaribe said the amendment would classify the destruction of electricity infrastructure as a criminal offence to curb persistent sabotage of national grid components and distribution assets.
It also seeks to restructure the Power Consumer Assistance Fund to support only social services and low-income consumers, ending the blanket subsidy regime blamed for trillions of naira in government debt.
“With crippling debts and operational inefficiencies threatening a total collapse of the power sector, this amendment provides a legislative lifeline,” Abaribe told his colleagues. “This bill strengthens governance, finances, labour relations, and the legal foundation of the sector.”
The bill clarifies transitional provisions for transferring intrastate electricity regulation from the Nigerian Electricity Regulatory Commission (NERC) to state governments, ensuring regulatory consistency while maintaining national grid stability. It also proposes reforms to align labour practices in the sector with international standards while recognising electricity as an essential service.
Another important amendment is the establishment of a clear legal framework for engaging host communities. According to Abaribe, electricity licensees operating within any part of the value chain would now be required to address the concerns of host communities, promoting stability and accountability in local operations.
Additionally, the amendment strengthens institutions such as the Nigerian Electricity Management Services Agency (NEMSA) and the National Hydro Power Producing Areas Development Commission (N-HYPPADEC) by streamlining their operational and funding frameworks.
Abaribe said the bill also eliminates ambiguities in key sections of the Electricity Act 2023—specifically sections 2, 6, 8, 30, 65, among others—to ensure clearer interpretation and smoother implementation across the sector.
The amendments stem from the findings of a Senate-mandated investigation into the power sector, which, according to Abaribe, revealed “mind-boggling challenges” ranging from financial insolvency to operational collapse across the value chain.
“The Nigerian power sector is operating on the brink,” Abaribe warned. “If we don’t act now, we risk total systemic failure.”
The Senator also clarified that the amendment does not carry any new financial burden for the Federal Government. “In line with Standing Order 76(3), this bill has no financial compendium attached. On the contrary, it seeks to resolve a sector-wide financial crisis without requiring additional public funds,” he said.
In his remarks, Senate President Godswill Akpabio praised the depth of the proposed reforms and referred the bill to the Senate Committee on Power for further legislative action. He described it as a “vital legislative contribution” to Nigeria’s economic recovery and future energy security.
On his part, Adamu Aliero expressed optimism that the bill will address all the issues involved in the distribution, generation, and transmission of power in Nigeria. He also supported stiff penalties for vandals, saying, “We have capital punishment for vandals. These are national assets that should be protected.”
Similarly, Olamilekan Adeola called for vandalism of power assets to be heavily penalised but added, “The same contractors that installed the projects will go back there to take it away and claim it was vandalised.”
However, Akintunde Yunus warned his colleagues to focus on removing undue subsidies that overburden the public purse. “Government money should not be used to buy transformers for communities. There’s nowhere in the world where power is not being subsidised.”