Power & Energy

Electricity Act 2023

Repeals the 2005 EPSRA. Devolves electricity regulation to states — ends the federal monopoly that had existed since independence.

Signed
2023-06-09
Status
In force

1 Background

The Electricity Act 2023 is the most consequential reform of the Nigerian power sector since unbundling in 2005. It repeals the Electric Power Sector Reform Act 2005 and devolves regulatory authority to state governments. States can now legislate, generate, transmit and distribute electricity within their borders. The Act also explicitly permits embedded generation, captive power above 1MW without licence, and simplifies mini-grid licensing for off-grid solar.

2 Key provisions (8)

01
States can establish their own State Electricity Regulatory Commissions (SERCs)
02
Embedded generation (decentralised solar/gas) explicitly permitted
03
Captive power generation above 1MW allowed without a federal licence
04
Mini-grid licensing simplified for off-grid solar developers
05
Net metering for prosumers (sell back to the grid)
06
Mandatory feed-in tariffs for renewable energy + Renewable Energy Certificate market
07
Power Consumer Assistance Fund created for indigent customers
08
Cross-subsidy phase-out (industrial users no longer subsidising residential)

3 What changed in practice

12 states have established SERCs by mid-2026: Enugu (first, Jan 2024), Lagos, Ekiti, Ondo, Imo, Edo, Plateau, Oyo, Kogi, Niger, Cross River, others
Band A tariff raised from ₦68/kWh to ₦225/kWh (April 2024) for premium 20-hour customers
Federal subsidy bill projected to fall ₦3.4tn/yr → ₦1.1tn/yr
Lagos State Electricity Market — first state to formally exit federal grid jurisdiction (2024)

4 Who it affects

Power consumersState governmentsDisCosSolar developersIndustrial users

5 What it repealed / replaced

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