President Bola Ahmed Tinubu on Tuesday, 3 February 2026, signed the Electricity Act (Amendment) Bill 2025 into law, marking a significant shift in Nigeria’s energy governance. The amendment devolves key aspects of electricity management and oversight to state governments, altering the balance of federal‑state authority over the sector.
The new law grants states greater control over electricity distribution, regulation, and infrastructure planning within their jurisdictions, a move aimed at improving service delivery and accountability at the local level. Officials say the amendment is intended to address longstanding challenges in the power sector, including frequent outages, inefficiencies in distribution, and disputes over revenue allocation.
This is a milestone in the evolution of Nigeria’s electricity sector, President Tinubu said during the signing ceremony on 3 February 2026. By empowering states to take a more active role, we are promoting efficiency, local accountability, and the principles of federalism in service of the people.
Legal and political analysts note that the amendment carries broader implications beyond electricity governance. By devolving authority to state governments, the law reinforces state autonomy, strengthens resource control, and could influence political dynamics ahead of the 2027 national elections. Some observers see the move as a strategic effort to engage state actors more directly in policymaking and service delivery.
The Electricity Act (Amendment) also outlines mechanisms for coordination between federal and state authorities, ensuring that national grid operations, safety standards, and investment frameworks remain consistent across the country. Energy experts have welcomed the initiative as a potential pathway to improve electricity access and reduce bureaucratic bottlenecks that have long plagued the sector.
State governments have expressed readiness to implement the new provisions, with several governors highlighting plans to modernise distribution networks, attract private investment, and expand rural electrification under their jurisdiction. The Federal Ministry of Power will continue to oversee national policy, transmission infrastructure, and regulatory compliance, working in partnership with states to ensure a smooth transition.
Signed into law on 3 February 2026, the amendment represents a major policy and political milestone, reinforcing Nigeria’s federal structure while attempting to address persistent challenges in the electricity sector. Analysts say its implementation will be closely watched, as it could set a precedent for further decentralisation of key national resources and services in the lead-up to the 2027 elections.
