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President Bola Tinubu Signs Electricity Act 2023 Into Law, Set To Promote Private Sector Investment

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The Electricity Act 2023, which was initially enacted by MPs in July 2022, has received President Bola Ahmed Tinubu’s approval.

The Electricity and Power Sector Reform Act of 2005 will be replaced by the Electricity Act. It offers a framework to direct the Nigerian Electricity Supply Industry’s (NESI) post-privatization phase and promote private sector investment in the industry.

Highlighted below are some of the functions the Electricity Act seeks to guide; 

State electricity empowerment 

The de-monopolization of Nigeria’s electricity generation, transmission, and distribution of electricity at the National level empowers states, companies, and individuals to generate, transmit and distribute electricity.

Under the Act, states can issue licenses to private investors who can operate mini-grids and power plants within the state. However, the Act precludes interstate and transnational electricity distribution. 

Powers of NERC 

Under the Electricity Act 2023, the Nigerian Electricity Regulatory Commission (NERC) will be able to regulate the electricity sector within Nigeria without prejudice to the powers of the states to make laws and create electricity markets within those states and to regulate those markets. 

The Act mandates how NERC can transition regulatory responsibilities from itself to state regulators when they are established. Until a state has passed its electricity market laws, NERC will continue to regulate electricity business exclusively carried out in those states. 

For now, Lagos, Edo, and Kaduna states already have electricity market laws and can start regulating their market. But for other states without such laws, NERC will regulate. NERC will still carry out cross-border regulations – generation, and transmission across states will still be regulated by NERC. 

Role of lawmakers 

The Act grants lawmakers the power to carry out oversight responsibilities and function over the NESI through its respective Committees on Power in the Senate and House of Representatives. This is to be carried out notwithstanding the supervisory powers of any government Ministry over government-owned enterprises or other entities operating in the Nigerian electricity supply industry.  

Empowering renewable energy 

Electricity generation licensees are obligated to meet renewable generation obligations as may be prescribed by NERC. Under the Act, electricity generating companies will be mandated to either generate power from renewable energy sources, purchase power generated from renewable energy, or procure any instrument representing renewable energy generation. 

The Electricity Act also mandates the imposition of renewable purchase obligations on distribution or supply licensees. 

What you should know

The Act also states that anyone may construct, own or operate an undertaking for generating electricity not exceeding 1 megawatt (MW) in aggregate at a site or an undertaking for distribution of electricity with a capacity not exceeding 100 kilowatts (KW) in aggregate at a site, or such other capacity as NERC may determine from time to time, without a license. 

 

Credit: Nairametrics

BIG STORY

Power Generation Increased By 34% In 2024 — Power Minister Adelabu

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Adebayo Adelabu, the Minister of Power, announced that Nigeria’s power generation increased by 34% in 2024. Speaking during a budget defense session with the Senate Committee on Power, Adelabu revealed that the administration inherited an average generation capacity of 4,100 megawatts (MW) in 2023 and raised it to 5,528 MW by the end of 2024.

He attributed the increase to the addition of a new 700 MW hydroelectric power dam, Zungeru, and significant improvements from existing power plants, both hydro and thermal. Although the initial target was 6,000 MW, unforeseen challenges such as grid disturbances prevented this achievement. However, the shortfall was minimal.

Adelabu also highlighted a rise in energy access, from 59% in 2023 to 64% in 2024, driven by a combination of grid access expansion and growth in renewable energy initiatives, including solar, small hydro, and wind projects. Despite these advancements, he expressed concerns over the metering gap, with around six million customers metered and over seven million remaining unmetered. To address this, Adelabu mentioned that the ministry had secured a N700 billion fund and planned to procure at least two million meters annually over the next five years, aiming to eliminate the metering gap and fraud in electricity billing.

  • Shiroro-Kaduna-Mando Line Yet to Be Fixed Due to Insecurity

Adelabu also addressed the ongoing issue of the Shiroro-Kaduna-Mando transmission line, which has not been repaired due to persistent insecurity in the region. This line is one of two major power transmission routes to northern Nigeria, and its failure has placed significant pressure on the grid. The minister explained that attempts to repair the line were hindered by terrorist and bandit attacks, forcing the government to hand over the issue to security agencies.

Adelabu acknowledged that the national grid inherited by the government was “very old and dilapidated,” which contributed to eight collapses in 2024, five of which were full collapses. He emphasized that efforts were ongoing to address these challenges, with the Presidential Power Initiative aiming to revamp the grid and eliminate vandalism.

The minister expressed hope that 2025 would bring improvements, stating that despite the setbacks, the government had almost met its targets for 2024.

In response, Eyinnaya Abaribe, chairman of the Senate Committee on Power, questioned the government’s continuous funding of power distribution companies (DisCos).

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Those Who Collected Money For Alaafin Stool Will Be Prosecuted — Governor Makinde

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Seyi Makinde, the governor of Oyo State, has stated that individuals who received bribes during the selection of the Alaafin of Oyo designate will be prosecuted.

Makinde made this remark on Monday while presenting the staff of office to Abimbola Owoade, the new Alaafin of Oyo, at the Oyo State Government House in Ibadan.

Despite opposition from a five-member faction of the Oyomesi (kingmakers), who preferred Lukman Gbadegesin, Makinde announced Owoade as the Alaafin-designate on Friday.

In July 2024, two members of the Oyomesi informed the Economic and Financial Crimes Commission (EFCC) that Gbadegesin had offered each of the five kingmakers N15 million during the selection process.

While handing over the instruments of office to the monarch, Makinde reiterated that the Alaafin stool would not be for sale during his tenure.

He further emphasized that those who attempted to destabilize the traditional institution in the state would be prosecuted.

“The government is not letting down. We will prosecute them. The money they collected, they will still be prosecuted,” the governor stated.

“Except they go to Kabiyesi and apologise; if he forgives them, then I will also forgive them.”

The governor also clarified that there were no political motives behind his approval of Owoade as Alaafin.

He mentioned that he had neither spoken with Owoade nor met him or any of the other princes competing for the throne.

This approach, he said, allowed him to remain objective in his decision-making.

“Some people said maybe it was political consideration. No. Politics, electioneering is a game,” he stated.

“It’s only when you have been elected that governance becomes a serious business because you will take decisions that will affect millions of people. So, we will not play politics with governance.”

Makinde further explained that in 2019, his administration faced challenges with the traditional institution in Ibadanland, which have since been resolved to everyone’s satisfaction.

Regarding the Alaafin stool vacancy in 2022, he mentioned, “We were moving towards the election, and people said, ‘you have to approve the appointment of Alaafin; otherwise, Oyo people would not vote for you.’”

He added, “I said, ‘the people should not vote for me, but that I would do what was right,’ and Oyo voted for me massively. And Oyo will still continue to vote for me.”

The governor confirmed that the coronation would take place in four weeks, adding, “on that day, I’ll talk.”

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UPDATE: Why We Sacked Obasa, Replaced Him — Lagos Lawmakers [VIDEO]

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Lawmakers in the Lagos State House of Assembly have revealed why they sacked Mudashiru Obasa as their Speaker on Monday.

The lawmakers spoke after the plenary on Monday during which they also elected Hon. Mojisola Meranda as Obasa’s replacement.

The representative of Epe 1 Constituency, Abiodun Tobun, who spoke on behalf of his colleagues, said: “The Lagos State House of Assembly declared its decision to impeach Speaker Mudashiru Obasa.

“The impeachment was a unanimous decision by the lawmakers.

“The lawmakers agreed to take this step to safeguard our image and Lagos State.

“Change is inevitable, and we felt it was time for a new direction.

“All standing committees and principal office positions have been dissolved.

“We are determined to work together to elevate the Assembly and deliver on our responsibilities to Lagosians.”

Tobun then went on to explain in detail the reason for their decision.

 

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