The Forum of Commissioners of Power and Energy has expressed strong reservations over the proposed Electricity Act (Amendment) Bill, 2025, warning that its passage could trigger a constitutional conflict between the Federal Government and state governments.
In a joint statement issued by the chairman and secretary of the forum, Eka Williams and Omale Omale—who serve as Commissioners of Power and Renewable Energy for Cross River and Benue States respectively—the forum raised alarm that the bill, if enacted, could deepen existing financial and regulatory challenges across the country’s electricity sector.
The commissioners noted that electricity consumers are still grappling with the cost implications of the service band system, especially Band A, and cautioned that the proposed amendments would further burden consumers. “The imposition of additional financial burden on electricity customers already struggling with high electricity tariffs for Band A service is unacceptable, especially when states are actively pursuing cost-reflective tariffs tied to improved quality of service,” the statement read.
According to the forum, the amendment bill threatens to erode the constitutional authority granted to states under the Electricity Act 2023, particularly in the area of electricity distribution within their respective jurisdictions. “The amendment bill, if passed, will create a constitutional conflict between the Federal Government and states, as well as legal and regulatory conflicts between federal and state regulators, undermining the principle of cooperative federalism and potentially inviting judicial challenges,” it stated.
Forum Warns Amendment Bill Could Derail Sector Reforms and Burden Consumers
In addition to regulatory concerns, the commissioners argued that the bill introduces new financial obligations for consumers and market participants through mandatory contributions to the Power Consumer Assistance Fund (PCAF), a move they described as ill-timed and burdensome.
The forum emphasized that the amendment risks dismantling the gains achieved under the Electricity Act 2023, which has been widely acknowledged as a significant reform in the country’s power sector. “The amendment bill threatens to dismantle the progress and positive reforms initiated by the Electricity Act 2023, which has been widely hailed as a pivotal step towards a more reliable and efficient power sector,” the statement noted.
They warned that the amendment would not only increase financial pressure on electricity customers and the government but could also stall the federal and state governments’ efforts to establish a sustainable and self-financing energy sector. “The amendment bill, if passed, will further exacerbate the financial burden on the federal government and the states, undermining efforts to achieve a sustainable and self-financing power sector,” they added.
The forum concluded that pushing through the bill at this time would risk undermining President Bola Ahmed Tinubu’s flagship energy reforms and policy gains. “This untimely amendment risks undermining President Bola Ahmed Tinubu’s key policy achievements in the energy sector,” the statement read.
The position of the forum adds to a growing list of stakeholders questioning the rationale behind the proposed amendment and calling for broader consultations before any legislative action is taken.
For more in-depth updates, expert analysis, and ongoing coverage of Nigeria’s power sector reforms and policy developments, visit LouisaOlaniyi.com.ng. Stay informed, stay empowered.
