President Tinubu Signs Electricity Act 2023 into law; empowers states, private companies to generate power.
President Bola Ahmed Tinubu has signed the 2023 Electricity Act which is a replacement for the Electricity and Power Sector Reform Act of 2005 into a law.
The newly enacted law will de-monopolise Nigerian electricity generation, transmission & distribution of electricity at the national level.
This new law will empower states, companies & individuals to generate, transmit & distribute electricity in the country.
Recall that the Electricity Act 2023 was initially passed by lawmakers in July 2022 to allow the states to issue licences to private investors who can operate mini-grids & power plants within the state.
But the Act precludes interstate & transnational electricity distribution.
The Nigerian Energy Regulatory Commission would be able to govern the energy industry within Nigeria under the Electricity Act 2023 without prejudice to the states’ authority to pass laws, create electricity markets.