President Bola Tinubu has signed legislation granting the 36 states direct authority over electricity generation, transmission, and distribution within their borders. The Electricity Act (Amendment) Bill 2025, signed into law in 2024, implements a major constitutional change.
Previously, electricity regulation fell solely under federal control as part of the Exclusive Legislative List. The new law moves electricity to the Concurrent List, enabling states to fully manage their own power sectors. This includes the ability to license private companies to operate mini-grids and power plants.
“This law marks a new era in Nigeria’s energy sector,” President Tinubu stated during the signing ceremony. He emphasized that the change gives states “the constitutional authority to provide stable and efficient electricity to their residents,” aiming to boost economic growth through locally tailored power projects and job creation.
The reform shifts control from the federal government to state governments. Experts suggest it could reduce dependence on the national grid, which has faced persistent challenges. The decentralized model is also expected to accelerate electrification efforts, particularly in underserved rural, peri-urban, and urban communities.
State governors have welcomed the development. Lagos, Rivers, and Kaduna states have already announced plans to upgrade their power infrastructure following the law’s enactment.
While broadly supported, the change raises questions about funding and technical capacity in some states. The federal government has pledged support through grants and partnerships with private investors to aid implementation.
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