By Victor Ofure Osehobo
It’s no secret that President Bola Ahmed Tinubu wasted no time in getting to work since taking the oath of office as the Head of State and Commander in Chief of the Nigerian Armed Forces.
His impressive momentum has garnered excitement among Nigerians, who are hoping for his success. And in recent news, President Tinubu has just signed the Electricity Act 2023 into law, which was initially approved by lawmakers in July 2022.
The Electricity Act will serve as a replacement for the Electricity and Power Sector Reform Act of 2005 and aims to provide a comprehensive regulatory framework to guide the post-privatization phase of the Nigerian Electricity Supply Industry (NESI), as well as foster private sector investments in the sector.
The best part is that this Act is aligned with President Tinubu’s power sector reforms outlined in his Renewed Hope manifesto. These include goals such as diversifying the country’s energy mix with renewable energy sources, improving the distribution of electricity, making electricity more affordable for Nigerians, expanding rural electrification, investing in human capital development, and boosting the regulatory framework for the power sector.
This Electricity Act is a major win for Nigerians, as it will allow states, companies, and individuals to generate, transmit, and distribute electricity in Nigeria. It empowers states to partake in the electricity industry, de-monopolizing the nation’s electricity generation, transmission, and distribution at the national level.
The Act also grants states the power to regulate electricity markets within their borders and issue licenses to private investors to operate mini-grids and power plants within the state.
Additionally, this Act provides the Nigerian Electricity Regulatory Commission (NERC) with the authority to regulate the electricity sector without prejudice to the powers of the states to make laws and establish electricity markets within their borders. NERC is also allowed to transfer regulatory responsibilities to state regulators when they are established.
The Act also mandates lawmakers to perform oversight responsibilities for the NESI through its respective committees on Power in the Senate and House of Representatives. Moreover, electricity generation licensees are obliged to meet renewable generation obligations, which can be prescribed by NERC.
Overall, the Electricity Act 2023 has many exciting features that are sure to bring about positive changes to Nigeria’s energy sector. One major provision allows anyone to construct, operate, or own an undertaking for generating electricity not exceeding 1 megawatt (MW) or an undertaking for the distribution of electricity with a capacity not exceeding 100 kilowatts (KW) without a license. It’s clear that this Act holds tremendous potential for the growth and success of Nigeria. It is here and on time. Thanks to our President.
*Osehobo is the Assistant State Publicity Secretary of the Edo APC.*