Constitutional Amendment on Electricity; Key Implications for the Nigeria Electricity Supply Industry

The Nigeria Electricity Supply Industry has reached yet another defining milestone courtesy of the Presidential assent to the Fifth Alteration (No. 33) Bill 2022 (the ‘’Electricity Constitutional Amendment’’) on 17^th March, 2023.

The Amendment creates a new regime in the Nigerian Electricity Supply Industry whereby States within the Federation are now empowered to legislate with respect to the generation, transmission, and distribution of electricity in areas covered by the national grid system, in effect, all areas within the state.

This amendment potentially creates a new era of State controlled Electricity Markets as opposed to the former regime of centrally controlled market by the Federal Government. Although, before this amendment, State governments were empowered to legislate on generation, transmission, and distribution in areas outside the national grid, but in practice, the market is really monopolized by the federal government, while State governments majorly explored off-grid arrangements for electricity supply.