President Bola Tinubu has approved the new Electricity Act, which replaces the 2005 Electricity and Power Sector Reform Act.

The Electricity Act was first passed in July 2022 in the administration of former President Muhammadu Buhari.

The new bill seeks to promote private sector investments in the Nigerian power sector and de-monopolise the nation’s electricity generation, transmission and distribution at the national level.

Below are 10 benefits of the assented 2023 Electricity Act

1. The passage means that anyone may construct, own, or operate an undertaking for generating electricity not exceeding one megawatt in aggregate at a site, or an undertaking for distribution of electricity with a capacity not exceeding 100 kilowatts in aggregate at a site, or such other capacity as the Commission may determine from time to time, without a licence.

2. Electricity generation licensees are obligated to meet renewable generation obligations as may be prescribed by the Nigerian Electricity Regulatory Commission.

3. Electricity generating companies will be mandated to either generate power from renewable energy sources, purchase power generated from renewable energy or procure any instrument representing renewable energy generation.

4. Lawmakers are granted the power to carry out oversight responsibilities and function over the NESI through its respective Committees on Power in the Senate and House of Representatives.

5. Empowerment of states, companies, and individuals to generate, transmit and distribute electricity.

6. States can regulate their electricity markets by issuing licences to private investors who can operate mini-grids and power plants within the state. However, the Act precludes interstate and transnational electricity distribution.

7. The Nigerian Electricity Regulatory Commission will be able to regulate the electricity sector within Nigeria.

8. The commission can transition regulatory responsibilities from itself to state regulators when they are established.

9. Until a state has passed its electricity market laws, NERC will continue to regulate electricity businesses in such states.

10. For now, only three states -Lagos, Edo and Kaduna—have electricity market laws and can start regulating their markets. But for other states without such laws, NERC will regulate their electricity generation and transmission.

triple996:


"some people" will not like this news. They are always sad when ever they hear good news about their country

OkCornel:
BAT making sensible moves so far…

Observing keenly

As long as Nigeria progresses, I really don’t care who’s at Aso Rock.

Let’s think critically and leave emotions to the side.

Heck, I campaigned against BAT, but I’m seeing some positive signs in these early days. I hope he doesn’t disappoint like his predecessor.

OkCornel:
BAT making sensible moves so far…

Observing keenly

As long as Nigeria progresses, I really don’t care who’s at Aso Rock.

Let’s think critically and leave emotions to the side.

Heck, I campaigned against BAT, but I’m seeing some positive signs in these early days. I hope he doesn’t disappoint like his predecessor.

LeoDeKing:
From the look of things, there may not be any need for presidential election in 2027. Though, there may be formality, Nigeria need not waste her resources.

Of all what Tinubu has done so far, na dis one sweat my belle pass. Individuals now free to generate electricity at industrial scale. In addition to constant electricity in industries, Just imagine the employment this will generate.

Nigerians should never forgive anyone for insulting Tinubu by comparing him with an incompetent crook who couldn't develop a tiny village.