Senate Advances Electricity Act Amendment to Rescue Power Sector

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The Nigerian Senate has passed the Electricity Act (Amendment) Bill, 2025 through second reading, marking a significant step toward reforming the country’s struggling power sector and preventing its potential collapse.

Sponsored by Senator Enyinnaya Abaribe (Abia South), the proposed amendment seeks to overhaul the 2023 Electricity Act by addressing persistent regulatory and operational shortcomings. Lawmakers also pushed for stiffer penalties—including capital punishment—for acts of vandalism against electricity infrastructure.

Leading the debate, Senator Abaribe, who chairs the Senate Committee on Power, warned that inefficiencies and financial mismanagement are threatening the sector’s survival, citing over ₦4 trillion in government debt tied to the power industry.

“Electricity is an essential service. No one should hold the country to ransom under the guise of a strike. We must remove ambiguities and make the law implementable,” he said, while criticizing the inadequacy of current penalties and the lack of clarity in the law regarding labour rights, funding mechanisms, and the evolving role of state governments following recent constitutional amendments.

Senator Abaribe also condemned the persistent failure of some distribution companies to remit payments for electricity supplied, describing it as a key factor undermining sector stability.

Backing the amendment, Senator Adamu Aliero raised concerns over continued federal expenditure in a privatised sector. “We’ve privatised power, yet trillions of naira are still being spent on behalf of private companies. More importantly, the growing threat of vandalism must be addressed. Vandals are sabotaging national assets and should face capital punishment if necessary,” he said.

Key provisions of the amendment include:

  • Criminalising vandalism of electricity infrastructure;
  • Clarifying the shift of regulatory responsibilities from the Nigerian Electricity Regulatory Commission (NERC) to state governments;
  • Enhancing the implementation of the Electricity Consumer Assistance Fund;
  • Strengthening penalties and oversight mechanisms.

The bill has been referred to the Senate Committee on Power for further legislative work and is expected to be returned for plenary consideration within six weeks.

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