Abuja, Nigeria — President Bola Ahmed Tinubu has signed the Electricity Act (Amendment) Bill 2025 into law, marking a major shift in Nigeria’s power sector by granting state governments broader authority over electricity generation, transmission, distribution and regulation.
The new law effectively removes electricity from the Exclusive Legislative List, allowing states to independently develop and manage power infrastructure within their territories, a responsibility previously dominated by the Federal Government.
With the amendment now in force, state governments can generate, transmit, distribute and regulate electricity without waiting for federal intervention, a move aimed at improving electricity supply, encouraging private investment and deepening decentralisation in the energy sector.
According to the new framework, states that proactively harness their resources and attract investors are expected to experience improved power supply, while accountability for electricity shortages will increasingly rest with state leadership.
The legislation applies nationwide and is expected to accelerate reforms in the power sector, reduce pressure on the national grid and promote competition and innovation at sub-national levels.
Analysts say the law represents one of the most significant power sector reforms in recent years, placing greater responsibility on governors to address electricity challenges and deliver reliable power to residents.
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