The newly signed legislation marks a major shift from the previous structure where electricity regulation was solely under federal control. With this change, states are now empowered to design and manage their own power policies, attract local and foreign investments in energy infrastructure, and develop independent electricity markets tailored to their specific needs.
The bill, which amends key provisions of the Electricity Act, is expected to enhance efficiency and address long-standing challenges in Nigeria’s power sector, such as erratic supply, overcentralized decision-making, and limited private sector participation.
Analysts say this reform could pave the way for competition among states, driving innovation and improved service delivery. It also opens the door for increased use of renewable energy sources like so
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