New Electricity Law in Nigeria

What you need to know about the New Electricity Law in Nigeria

The Nigerian government on the 9^th of June 2023 passed into law the Electricity Bill of 2021 which converts it to the Electricity Act of 2023. The goal of the Electricity Act is to allow for the blend and correspondence of all the legislations of the Nigerian Electricity Supply Industry and to also implement a solid institutional structure to monitor the Nigerian electricity supply industry’s post-privatization operations while promoting private scheme investment in the sector.

The Nigerian Electricity Regulatory Commission (NERC) which will serve as an independent regulatory body overseeing the power sector at the federal level is retained by the Act.

Notable Provisions of the Electricity Law Act 2023

1. The new Act introduced the national de-monopolization of electricity generation, transmission, and distribution in Nigeria. It now authorizes states, individuals and businesses to generate, transmit and distribute electricity.
2. The Act now allows states to grant licenses to private investors to operate mini-grids and power plants within their borders. However, the Act disallows interstate and international electricity delivery.
3. Another key provision of the Act is the authority it vested on the Nigerian energy regulatory commission (NERC) which is vested with the power by the Act to control the energy industry within Nigeria under the Electricity Act 2023. Though, this is without prejudice to the authority vested in the states which allows them to create electricity markets, pass laws, and regulate the markets.
4. Where a state does not implement any law to regulate its electricity market, then NERC will continue to carry out cross-border rules, regulating generation and transmission across the state.
5. The lawmakers are given the power to engage in oversight responsibilities and exercise control over the electricity industry through the Senate and House committees on electricity.
6. The Act has also made provision for a quick and speedy resolution process of disputes through the formation of the Electricity Disputes Appeal Tribunal which provided it an increased scope and charges for offences and penalties. There is also the creation of the federal power task force.
7. In a bid to diversify Nigeria’s energy mix and reduce carbon footprint in the country, it has mandated the use of clean and sustainable energy sources. This is why the Nigerian government through implementing the Act has mandated electricity-generating enterprises to adopt the use of clean and sustainable energy through renewable energy sources, purchase renewable energy, or purchase instruments needed for renewable energy generation.
8. There is now provision of legal consequences for numerous illegal activities regarding electricity theft, meter bypassing, and intentional ruin of electricity infrastructure. The punishment for electricity theft is imprisonment from 6 months to 3 years, while theft of electricity lines and materials may attract 3-5 years imprisonment. The Act also provides that anyone who aids, abets, or conceals the commission of any of the offenses outlined in the Act will be liable to similar penalties as the main offender.

Conclusion

This move by the Nigerian government shows how determined they are to modernize its electricity sector, invite investors, and provide reliable and affordable electricity to its citizens.

You can contact us for a free online legal advice in Nigeria in order to provide you with more insight about what the Law provides in the new electricity act 2023.

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