States, companies authorised to generate power as Tinubu signs electricity bill into law

THE CABLE

President Bola Tinubu has assented to the electricity bill, which empowers states, companies and individuals to generate, transmit, and distribute electricity.

The new electricity law repeals the Electricity and Power Sector Reform Act of 2005 and consolidates the laws relating to the Nigerian Electricity Supply Industry (NESI).

TheCable had reported that the senate passed the electricity bill in July 2022 to solve the sector’s challenges.

On the other hand, President Muhammadu Buhari had signed 16 constitutional amendments in 2022, one of which pertains to the devolution of powers (national grid system) – clarifying the powers of the federal government and states to generate, transmit, and distribute electricity.

Consequently, states have been granted constitutional authority to enact laws that allow them to generate, distribute, and transport electricity within its boundaries, including territories formerly covered only by the national grid.

Speaking on the enactment of the new act, President Bola Tinubu, during an interactive session with traditional rulers on Friday, said the constitutional amendment permits Nigeria’s 36 states to generate electricity.

‘‘That’s devolution of power and that should be our contribution to the developmental projects you are looking for and we will continue in ways that will help our people,’’ he said.

READ THE FULL STORY IN THE CABLE