POWER BOOST: ELECTRICITY BILL IGNITES CHANGE

The Federal Government is considering re-privatizing 11 power distribution companies, pending the passage of the Electricity Act (Amendment) Bill, 2025, currently being reviewed by the National Assembly. This effort aims to address the challenges in Nigeria’s power sector.

The National Assembly seeks reforms that encourage investors in electricity distribution companies to boost their investments. If they fail to do so within 12 months, they may face share dilution or re-privatization, promoting accountability.

Led by Senator Enyinnaya Abaribe, the amendment bill addresses regulatory gaps in the 2023 Electricity Act. Once passed, it will empower the Nigerian Electricity Regulatory Commission to enforce compliance.

Despite concerns about disruptions to the decentralized electricity market, this legislation aims to enhance accountability and build a more resilient power sector by imposing penalties on defaulting companies.