Connect with us

Business

States kick as Senate moves to amend Electricity Act; read details

Published

on

A fresh battle over the control of Nigeria’s electricity sector is brewing, as state electricity regulators have accused the National Assembly of attempting to claw back powers already devolved to states under the Constitution and the Electricity Act 2023.

In a strongly worded memorandum submitted to the Senate Committee on Power and obtained by our correspondent on Tuesday, electricity regulatory commissions and bureaus from 16 states warned that the proposed Electricity Act (Amendment) Bill 2026 could reverse one of the most significant reforms in Nigeria’s power sector.

The regulators argued that the amendment bill, rather than strengthening the electricity market, seeks to restore extensive federal oversight over matters they insist have constitutionally become the responsibility of states.

The concerns were contained in a letter dated May 26, 2026, addressed to the Chairman of the Senate Committee on Power and signed on behalf of the State Electricity Regulatory Commissions and Bureaus.

Signatories to the document included the chairmen and chief executives of electricity regulators in Abia, Anambra, Bayelsa, Edo, Ekiti, Enugu, Gombe, Imo, Kogi, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo and Plateau states.

The regulators said they had taken advantage of the Electricity Act 2023 to begin building sub-national electricity markets and had already engaged investors based on the framework created by the law.

They noted that they had earlier met with the Senate committee and were subsequently requested to consolidate their concerns into a single memorandum for the consideration of lawmakers, the Nigerian Electricity Regulatory Commission and other stakeholders.

The letter stated, “We represent State Regulatory Commissions/Bureaus that have taken advantage of the Electricity Act 2023 to commence the development of our sub-national electricity markets and sectors.

We are grateful for the audience you granted us to raise concerns on the ongoing consideration of the proposed Amendment Bill 2026 to the Electricity Act 2023.

“As agreed during our discussion, we have collated and consolidated the comments into one document which is hereby attached for the consideration of the Senate and House Committees on Power, NERC and other stakeholders.”

The state electricity regulators said they had identified 17 contentious provisions in the proposed amendments to the Electricity Act that they believed could undermine the constitutional powers already granted to states in the electricity sector.

According to the regulators, the areas of disagreement include the authorisation of State Houses of Assembly to legislate on electricity matters, the supremacy of state laws within state electricity markets, and provisions seeking to retain federal control over all activities connected to the national grid.

Other disputed clauses relate to restrictions on states’ participation in the wholesale electricity market, matters concerning the Nigerian Wholesale Electricity Market, the authority of states over independent transmission and distribution networks, and the establishment and administration of the Power Consumers Assistance Fund.

The regulators also raised concerns over the proposed expansion of the powers of the Nigerian Electricity Management Services Agency, the structure and decisions of the Forum of Electricity Regulators, and the provision granting the Nigerian Electricity Regulatory Commission final administrative appellate jurisdiction on certain issues arising within the forum.

See also  Presidency dares Peter Obi to quit presidential race over Anambra debt controversy, read details  

They further opposed provisions designating electricity generation, transmission, distribution and supply as essential services, as well as clauses dealing with government-owned enterprises as licensees and obligations to host communities.

Additional areas of contention include the regulation of intra-state electricity matters that may have implications for the national grid, the imposition of timelines and phased conditions for states transitioning into independent electricity markets, and proposed federal oversight on consumer protection, anti-trust measures and tariff design within state electricity jurisdictions.

The regulators argued that the disputed provisions require further consultation to ensure that the decentralisation objectives of the Electricity Act are not weakened by subsequent amendments.

“A review of the Bill suggests that the general intention is to reverse the devolution of legislative, governance and regulatory powers over electricity matters that occur solely within the respective states to the state governments, in favour of a reconsolidation of powers at the federal level, with the Nigerian Electricity Regulatory Commission retaining full supervisory powers over the market. Effectively, it appears that the intention of the Bill is that Nigeria should continue with the same regime that, for 20 years, has not led to any significant increase in power availability or per capita consumption for Nigerians, despite ever-increasing (and unsustainable) federal debt.”

At the centre of the dispute is the interpretation of the constitutional amendments that allowed states to legislate on electricity matters within their territories. The regulators argued that the proposed amendment bill wrongly assumes that state legislatures derive their powers from the National Assembly rather than directly from the Constitution.

According to them, any attempt by the National Assembly to grant, restrict or redefine those powers through ordinary legislation would amount to a constitutional violation.

The memorandum stated, “Section 2 of the Bill aims to amend Section 2(2)(a)-(e) of the Principal Act. By that section, the National Assembly reserves to itself the power to delegate legislative powers to States’ Houses of Assembly, suggesting that the Bill (or the Principal Act) is the source of the powers of a state to make laws on its electricity markets.

“This provision is based on a shocking miscomprehension of Nigerian constitutional law—it proceeds from the wrong assumption that the NASS, by ordinary legislation and not constitutional amendment, can confer (or restrict) the legislative power of states.

“The constitutional division of powers is fundamental to federalism, ensuring a balance between national unity and state autonomy. There is no legal framework for the NASS to ‘empower’ state governments to make law by ordinary legislation, as the language of the Bill attempts to do.

“The constitutional division of powers is fundamental to federalism, ensuring a balance between national unity and state autonomy. There is no legal framework for the NASS to ‘empower’ state governments to make law by ordinary legislation, as the language of the Bill attempts to do. Consequently, Section 2 of the Bill, seeking to amend Section 2 of the Act, is not consistent with the Constitution.”

See also  NUPENG suspends strike

The regulators described as “a shocking miscomprehension of Nigerian constitutional law” the provisions of the bill that appear to suggest that the National Assembly is the source of states’ authority over electricity matters.

They warned that the proposed law could undermine the principle of federalism by weakening state autonomy. Beyond constitutional concerns, the regulators said the bill could create uncertainty in the electricity market and discourage investors who had already committed resources based on the existing legal framework.

“The clear intention behind the new drafting is to reconsolidate in the Federal Government matters solely within the state electricity markets which had been devolved to the states,” the memorandum stated.

“This will defeat the key objectives of the Electricity Act and the various states’ electricity laws, even before the regime introduced by them has taken any root. It will introduce avoidable disruption in the industry as significant investment decisions have already been taken based on the Electricity Act 2023, and these investments are now put at risk by this proposed amendment.”

The state regulators specifically faulted provisions relating to federal oversight of activities connected to the national grid, restrictions on state authority over wholesale electricity transactions, the proposed expansion of NERC’s powers and changes affecting mini-grids and independent distribution systems.

They argued that allowing NERC to retain overriding authority over electricity activities merely because they have some connection to the national grid would effectively render state powers meaningless.

The memorandum stated, “What is required, in order to attain the full benefits of the decentralisation of the Nigerian Electricity Supply Industry that is the theme of the Fifth Alteration and provided for in the Principal Act, is proper coordination on transmission matters between NERC and state regulators, and not top-down federal legislation.”

The regulators also rejected provisions that would permit NERC to exercise final administrative appellate jurisdiction over disputes involving state electricity regulators. According to them, NERC and the SERCs are on equal standing within their respective constitutional spheres of authority.

“NERC and the SERCs are on equal standing within their respective constitutional spheres of authority,” the memorandum said. “The National Assembly cannot arrogate to NERC quasi-judicial authority over SERCs, especially where the dispute might be on a matter over which NERC has no authority.”

They further argued that the Constitution already vests judicial powers in the courts and that such responsibilities cannot be transferred to a regulatory agency. The proposed establishment of a Forum of Electricity Regulators also drew criticism.

Although the regulators acknowledged the importance of coordination among electricity regulators, they argued that participation in such arrangements should be voluntary rather than imposed through federal legislation.

See also  Dangote resigns as chairman of cement company

“The better approach would be a Memorandum of Understanding or similar instrument jointly negotiated by all relevant regulatory bodies in which the principles of coordination and harmonisation will be agreed,” they said.

The state regulators equally opposed provisions declaring generation, transmission, distribution and supply of electricity as essential services covering both federal and state electricity markets.

According to them, such provisions could inadvertently expand NERC’s jurisdiction into areas already devolved to states, including tariff regulation. “The provision is invidious, regressive and should be expunged,” the memorandum stated.

The regulators also faulted proposals empowering NERC to determine contributions to the Power Consumers Assistance Fund from electricity consumers. They argued that since electricity tariffs and retail supply have become matters for state regulation, decisions relating to subsidies and customer contributions should similarly reside with state authorities.

Other contentious areas identified by the regulators included host community obligations, the role of the Nigerian Electricity Management Services Agency, licensing arrangements involving government-owned electricity enterprises and timelines for states transitioning into independent electricity markets.

The dispute highlights the growing tension between the Federal Government and states over the future structure of Nigeria’s electricity industry. The Electricity Act 2023 was enacted following the Fifth Alteration to the 1999 Constitution, which removed electricity from the Exclusive Legislative List and empowered states to generate, transmit and distribute electricity within their territories.

Since then, several states have enacted electricity laws and established regulatory agencies to oversee emerging sub-national electricity markets. Lagos, Enugu, Ekiti, Ondo, Edo and other states have already commenced varying stages of implementation of their electricity reform programmes.

Energy experts have repeatedly described the decentralisation of the sector as a major opportunity to attract investment, improve efficiency and expand access to electricity. However, the latest amendment proposals appear to have reopened the debate over how regulatory powers should be shared between Abuja and the states.

As the National Assembly continues deliberations on the amendment bill, the position adopted by lawmakers could shape the future direction of Nigeria’s electricity reforms and determine whether the country deepens its experiment with decentralisation or returns to a more centralised regulatory model.

The Electricity Act 2023 was designed to operationalise the constitutional amendments that empowered states to participate directly in electricity generation, transmission and distribution within their boundaries. Since its enactment, several states have passed their own electricity laws and established regulatory commissions.

The proposed Electricity Act (Amendment) Bill 2026 seeks to amend several provisions of the principal legislation. However, state regulators contend that some of the proposed changes amount to an attempt to reverse the gains of decentralisation and restore broad federal control over the Nigerian Electricity Supply Industry.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

How Moniepoint customers can check eligibility for FG’s ₦50,000 relief support

Published

on

Moniepoint Microfinance Bank says eligible customers can now check their status and access the Federal Government’s ₦50,000 emergency relief support through its Unstructured Supplementary Service Data (USSD) channel.

The bank said in a statement issued on Wednesday that “customers could dial *5573*27# from their registered phone numbers and select the option to check their eligibility for the National Emergency Relief and Stabilisation Intervention (NERSI).”

It said customers confirmed as beneficiaries would be guided through the steps to accept the support and receive the funds into their Moniepoint accounts at no additional cost.

The intervention, led by the Federal Ministry of Humanitarian Affairs and Poverty Reduction, is designed to provide direct financial assistance to vulnerable households to help them meet essential needs amid prevailing economic pressures.

On Tuesday, PUNCH Online reported that that FG had begun payment to eligible Nigerians.

Moniepoint said it was “among the payment providers selected by the Federal Government to facilitate the disbursement of the relief funds.”

It explained that beneficiary selection was based on the government’s eligibility criteria and verification processes, which relied on verified national identity records and the National Social Register.

The bank noted that the programme was being implemented in phases across the country, adding that not all customers would qualify or be selected at the same time.

What moniepoint customers should know?

Babatunde Olofin, Managing Director and Chief Executive Officer of Moniepoint Microfinance Bank, said the “bank was pleased to support eligible customers in receiving assistance under the government initiative.”

See also  2027: ADC faction eyes Jonathan, Saraki, Makinde alliance

Olofin said Moniepoint would deploy its technology and financial infrastructure to make the process accessible, seamless and secure.

He urged “customers to use only the bank’s official USSD channel when checking their eligibility or accessing the funds.”

He added that the process required “no additional payment, documentation or third-party intervention.”

The bank also advised customers with enquiries to contact its customer service team or the NERSI helpdesk.

Moniepoint said its nationwide network of financial services infrastructure, including Point-of-Sale terminals across the country’s 774 local government areas, would support efforts to extend access to the intervention.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

$196m NIN funds unspent, FG seeks extension

Published

on

The Federal Government has requested another 12-month extension of Nigeria’s $430 million digital identity project as approximately $196m of its financing remains undisbursed and National Identification Number (NIN) issuance trails the target by 59 million.

This is contained in a World Bank restructuring paper dated 22 October, 2026, obtained by The PUNCH from the bank’s website on Wednesday.

The proposed extension would move the Nigeria Digital Identification for Development Project’s closing date from 31 December, 2026, to 31 December, 2027.

“The proposed Level 2 restructuring seeks to extend the project closing date by 12 months, as requested by the Government on May 8, 2026,” the report stated.

“This would be the third closing date extension under this project since Board Approval in February 2020, for the cumulative period of 42 months (3.5 years).”

The project was originally scheduled to close in June 2024 before receiving a six-month extension and another two-year extension.

An analysis by The PUNCH showed that approximately $196m, representing 45.6 per cent of the financing, remained undisbursed after total disbursements reached about $234m.

“The overall project disbursement rate inclusive of co-financiers stands at approximately $234m or 54.4 per cent,” the bank stated.

The financing comprises $115m from the World Bank’s International Development Association, $100m equivalent from the French Development Agency and $215m equivalent from the European Investment Bank.

The undisbursed balance therefore covers all three financiers. The report’s financing summary separately puts IDA’s undisbursed balance at $18.83m.

Approved in February 2020 and effective from December 2021, the project seeks to expand access to identification and services through a secure, inclusive national identity system.

See also  Blackouts cost Nigeria N40tn yearly – Report

However, about 121 million people had received NINs by September 30, 2026, against the 180 million target, leaving a shortfall of 59 million.

Although this represents an increase of approximately 84 million from the baseline, NIMC must substantially accelerate enrolment to meet the target.

“NIMC reconfirmed the commitment to reach the target of 180 million noting that this would require an increase in monthly enrollment rates from the current average of 1.5 million to 3.9 million,” the report stated.

This implies a 160 per cent increase in monthly enrolment.

The bank also distinguished enrolment records from successfully generated NINs, noting that more than 140 million enrolments had been recorded by September 14, but only 121 million had completed biometric and demographic validation and duplicate checks.

Women and children remained behind their respective targets. As of June, 40.4 million women and girls had NINs against a target of 79 million, while 26.3 million children under 16 had NINs against 60.83 million.

The report identified unpaid enrolment partners as another constraint, stating that the billing system must produce audited payment reports to enable payments to partners “which have not been paid since January 2026.”

Other priorities include deploying 7,000 procured mobile devices by January 2027, training agents, expanding ward-level enrolment nationwide and beginning school enrolment by December 2026.

The ward campaign had generated 10 million NINs since March, according to the report.

A major reason for the extension is the delayed replacement of NIMC’s existing technology with the National Identity Management System 2.0.

The contract was signed on September 15, 2026, following lengthy procurement. Implementation, normally requiring approximately 18 months, was compressed into 15 months, with full deployment and data migration scheduled for December 15, 2027.

See also  Presidency dares Peter Obi to quit presidential race over Anambra debt controversy, read details  

The new platform would replace fragmented proprietary systems with an open-source system designed to improve capacity, interoperability and data protection.

Although NINAuth was launched in May 2025, the project’s digital authentication targets remained unmet pending integration into the new platform.

The bank warned that failure to extend its involvement would also halt implementation by the other financiers.

“If the project is not extended by WBG, all other co-financiers will also close,” it stated.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Read how FG selects beneficiaries for N50,000 relief

Published

on

The Federal Government has explained how it selects beneficiaries for its N50,000 cash relief under the National Emergency Relief and Stabilisation Intervention.

The clarification comes as payments continue and many Nigerians seek to understand how the government identifies recipients and determines their eligibility.

According to information on the Federal Ministry of Humanitarian Affairs and Poverty Reduction’s NERSI website, sighted by PUNCH Online on Wednesday, beneficiaries are selected from verified national identity records and the National Social Register.

“Beneficiaries are selected from verified national identity records and the national social register, then screened to reach poor and vulnerable households,” the website states under its eligibility and selection section.

The National Identification Number (NIN) is issued by the National Identity Management Commission (NIMC) after enrolment.

It is used to verify an individual’s identity and is linked to the mobile wallet through which selected beneficiaries receive the relief.

The National Social Register (NSR), on the other hand, is a database of poor and vulnerable households in Nigeria, coordinated by the National Social Safety-Nets Coordinating Office.

According to NASSCO, the register contains data on more than 70 million individuals.

It said registering vulnerable persons is a multi-process activity that begins with states identifying their poorest local government areas and communities, after which trained teams work with residents and community leaders to identify vulnerable households.

The identified households are then registered digitally and assessed using poverty indicators.

Those ranked within the bottom six deciles may qualify for inclusion in the National Beneficiary Register, which is used for programmes such as cash transfers.

See also  Ladoja crowned 44th Olubadan, set to receive staff of office

Enrollment in both NIMC and NSR is a prerequisite for being selected for N50,000 cash relief, according to NERSI.

However, the office does not provide further details on the specific screening criteria used to determine relief recipients.

It stresses that Nigerians cannot apply or pay to be included in the beneficiary list.

“You cannot apply or pay to be added,” the website says. “Not everyone is in the first group. Your data is used only for this programme.”

The Humanitarian Assistance Programme is described as the Federal Government’s shock-responsive cash transfer initiative for poor and vulnerable households. It provides financial support through mobile wallets.

“Under NERSI, selected beneficiaries receive support of ₦50,000 into a mobile wallet,” the website explains. “It is a grant from the Federal Government. You do not pay it back.”

According to the office, selection is based on need and covers all six geopolitical zones, regardless of religion, ethnicity or political affiliation. Payments are made in phases, meaning beneficiaries are not contacted at the same time.

PUNCH Online reported that the Minister of Humanitarian Affairs and Poverty Reduction, Dr Bernard Doro, announced the commencement of disbursement in a statement on October 30.

Nigerians can check if they are selected through the approved providers by dialling their USSD codes: ALAT by Wema (*945*23#), MoMo PSB (*671*0#), NairaGram (*726*00#), OPay (*955*20#) and Moniepoint (*5573*27#).

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending