The Senate has handed the Electrical energy Act (Modification) Invoice, 2025 via second studying, as a part of efforts to rescue Nigeria’s struggling energy sector from imminent collapse.
Sponsored by Senator Enyinnaya Abaribe (Abia South), the modification goals to overtake the 2023 Electrical energy Act by addressing regulatory loopholes.
Throughout the debate, some lawmakers additionally proposed capital punishment for people convicted of vandalizing energy infrastructure.
Main the controversy, Senator Abaribe, who additionally chairs the Senate Committee on Energy, warned that the nation’s electrical energy business is buckling below the load of inefficiencies and {financial} mismanagement because the Federal Authorities is at the moment indebted to the tune of over N4 trillion within the energy sector.
He famous that the present legislation comprises minimal penalties for offenders, has not been absolutely operationalised, and lacks readability on key regulatory provisions, particularly concerning funding, labour rights in important companies and the position of state governments following latest constitutional reforms.
“Electrical energy is a vital service. Nobody ought to maintain the nation to ransom below the guise of a strike. We should take away ambiguities and make the legislation implementable,” he acknowledged.
Abaribe additionally criticised the refusal of some electrical energy distribution corporations to pay for energy equipped, additional compounding the sector’s instability.
In help of the invoice, Senator Adamu Aliero, expressed concern over continued federal expenditure on the privatised energy sector.
He criticised the {financial} burden nonetheless being carried by the federal government regardless of the privatisation of technology and distribution corporations (GenCos and DisCos), recommending capital punishment for saboteurs of nationwide property.
“We’ve privatized energy, but trillions of naira are nonetheless being spent on behalf of personal corporations. Extra importantly, the rising risk of vandalism should be addressed. Vandals are sabotaging nationwide property and may face capital punishment if essential,” Aliero stated.
The invoice proposes a spread of reforms, together with:
The modification, which scaled second studying, has been referred to the committee on energy to report again inside 6 weeks.
The 2023 Electrical energy Act, handed below the administration of President Bola Tinubu, empowers states to manage and distribute electrical energy inside their territories, breaking away from a long time of centralized management.
In December 2024, some stakeholders stated makes an attempt to amend the 2023 Electrical energy Act could deter traders.
Dr. Idowu Oyebanjo, Managing Director of Idfon Energy Engineering Consultants, stated the latest makes an attempt by the Nationwide Meeting (NASS) to amend the Act may erode investor confidence in Nigeria’s energy sector.
