A recent article titled “The Iniquities of the Electricity Act of 2023 – South vs. North, Rich vs. Poor”, published in several newspapers, is a deeply flawed and dangerously misleading narrative that attempts to frame the Electricity Act (EA) 2023 as a politically motivated instrument that disadvantages the North. Not only is it riddled with factual inaccuracies, but it is also a disgraceful attempt to sow discontent and exploit old fault lines for a narrow agenda.
- EPSRA and NERC: Two decades of northern disadvantage
- A reform rooted in northern leadership
- Full State Participation In Electricity Under The EA 2023
- The Amendment Bill: A Trojan Horse For Northern Disempowerment And Further Energy Impoverishment
- The truth about power plants and grid control
- FOCPEN: A national body, not a southern conspiracy
- Implementing the EA 2023: Northern states are leading the way
- On investment: Centralised control had already failed
- Cross-subsidisation and equity require innovation, not a reversion to central control
- What we should be doing instead
For clarity, the power for states to legislate on electricity at the subnational level was not granted by the Electricity Act (EA) 2023. That power is a constitutional power vested in states by the 1999 Constitution (as amended) and is not subject to the laws of the National Assembly. The Fifth Alteration to the 1999 Constitution, signed into law by the late President Muhammadu Buhari, GCFR, removed previous constitutional ambiguity that restricted states’ oversight of their electricity markets to “areas not covered by the national grid” within their territories. The EA 2023 merely provides the framework for implementing this constitutional right. Any attempt to roll back this progress is not just a violation of the Constitution—it is a betrayal of the right of sub-nationals to self-determination in energy development and energy security within their territories.
Contrary to the referenced article, the EA 2023 is, in fact, the most significant legal framework in decades that offers the North a real path to energy security and economic prosperity.
EPSRA and NERC: Two decades of northern disadvantage
To understand why the EA 2023 is a blessing for the North, one must first look at the disastrous legacy of the old system under the Electric Power Sector Reform Act (EPSRA) 2005. For over two decades, the Electric Power Sector Reform Act (EPSRA) was the governing law that centralised electricity regulations under the NERC and enabled a national grid that systematically failed the northern region. The North, which accounts for the vast majority of Nigeria’s unelectrified population, was condemned to darkness under this centralised system. The statistics are damning:
The North has one of the lowest electricity consumption per capita rates in the world. The World Bank data from 2023 confirms that of the over 80 million Nigerians without access to electricity, a staggering 70 percent reside in the North.
Nigeria’s national grid system is radial; one transmission line connects the Northeast to the national grid, making it the most vulnerable region in the country. The entire Northeast region was without power for six months earlier this year due to a single point of failure in the national grid. The Northwest suffered a three-month blackout for the same reason.
The statistics from NERC reports on energy off-take by Distribution Companies (DisCos) further highlight this imbalance in electricity consumption created under the EPSRA. The combined allocation of the five Discos serving the north, including FCT (Abuja, Kaduna, Kano, Jos, and Yola Discos), is only 36.5%, whereas Lagos alone (Eko & Ikeja Discos) receives 26 percent of the centrally administered NESI.
The Electricity Act 2023 is the first real opportunity for the North to take its energy destiny into its own hands. It recognises true federalism by empowering states to regulate electricity within their borders. It corrects historical inefficiencies, allowing bottom-up market development and localised solutions that reflect diverse economic realities.
A reform rooted in northern leadership
The author’s attempt to present the EA 2023 signed by President Bola Ahmed Tinubu, GCFR, as a “southern bill” is a falsehood that betrays a wilful ignorance of the legal and political history of the sector. On the contrary, the EA 2023 is a reform with deep Northern roots. The groundwork to reform the power sector and devolve full constitutional powers to sub-national to make laws to create and regulate their electricity markets was laid under the late President Muhammadu Buhari. The 5th alteration of the 1999 Constitution (as amended) and the Electricity City Act 2023 were passed by the 9th National Assembly. It is pertinent to state that the Chairmen of both the Senate Committee on Power (Senator Gabriel Torwua Suswam, Benue) and the House of Representatives Committee on Power (Hon. Aliyu Magaji Dau (Jigawa), at the time, were from the North. It is most commendable that President Bola Tinubu signed the Electricity Bill (as it was then known) into law within ten days after his inauguration. Hence, for anyone to seek to give an ethnic colouration to the Electricity Act (2023) is not only reprehensible but also a direct assault on the integrity of these northern leaders who championed the constitutional reforms and the Electricity Act.
Full State Participation In Electricity Under The EA 2023
The claim that states could fully participate in electricity under the old EPSRA regime is misleading. EPSRA gave NERC exclusive authority over grid-connected electricity, including intrastate electricity distribution. The Rural Electrification Agency (REA) also had a monopoly over the implementation of rural electrification projects within state territories. Even though states have made significant investments in electricity within their territories, such investments were typically handed over to the privately operated DismonopolyCos and had no regulatory backing. Now, under the Electricity Act 2023, states can license operators, set tariffs, attract capital, and build autonomous markets—as Enugu State is already doing. The fact is that the Act has enabled context-specific regulations, faster approvals, better consumer protection, and locally driven investment. It enhances, not weakens, accountability. Investors are not deterred by decentralisation; they welcome regulatory clarity, responsiveness, and bankable frameworks that reflect local realities and reduce political and regulatory risk.
The Amendment Bill: A Trojan Horse For Northern Disempowerment And Further Energy Impoverishment
Another concerning aspect of the author’s opinion is the support for the Electricity Act (Amendment) bill 2025, sponsored by Senator Eyinnaya Abaribe (PDP, Abia). The Forum of Commissioners of Power and Energy in Nigeria (FOCPEN) describes the proposed amendment bill as a backdoor amendment of the 1999 Constitution. The amendment bill, if passed, would actually worsen the electricity access deficit in Northern Nigeria.
Beyond the unconstitutionality of the bill, the Amendment Bill imposes a 10% charge on monies and royalties paid to states from the concession of existing and new hydroelectric dams by the National Hydroelectric Power Producing Areas Development Commission (N-HYPPADEC). The North is blessed with numerous small rivers that can be developed for hydroelectric power, and it also has a problem of recurring devastating flooding. The amendment bill, if passed, would cripple investments in small hydroelectric dams and rob northern states of the very funds they need to manage flood disasters. States like Niger, Sokoto, Adamawa, Kogi, Benue, Jigawa, Kebbi, Kano, Kaduna, and Taraba would be hit hardest.
To be clear, the amendment bill re-entrenches the same centralised management of the power sector that left the North behind for decades and will hinder the North’s ability to develop and build its own energy future and make the North further dependent on a failed national grid system that impoverishes its economy.
The truth about power plants and grid control
The author makes an outrageous and ignorant claim that states will take control of power generation plants within their states, which are connected to the national grid, and cut off the electricity supply to Northern States. One can only describe this claim as a lie from the pit of hell. Under the EA 2023 and the Constitution, states have no jurisdiction over generation power plants connected to the national grid. NERC retains regulatory authority over the national grid and interstate electricity trade.
FOCPEN: A national body, not a southern conspiracy
The article’s insinuation that the Forum of State Commissioners of Power and Energy in Nigeria (FOCPEN) is a Southern cabal is both dishonest and divisive. FOCPEN’s leadership includes the Chairman from the South-South, the Vice Chairman from the North-East, the Secretary from the North Central and other executive committee members representing the six geopolitical regions. This is national collaboration in action!
Implementing the EA 2023: Northern states are leading the way
Contrary to the article’s claims, Northern States are not victims of the Electricity Act 2023. Rather, the EA 2023 empowers Northern States to control their electricity development. The EA 2023, grounded in constitutional reform, is already catalysing a wave of investment and innovation in the electricity sector across Northern Nigeria. Far from being disadvantaged, Northern States are leading the charge to create their electricity markets and build resilient, localised energy systems that will finally free them from the unreliable and epileptic national grid.
States like Taraba, Kebbi, Nassarawa, Katsina, Kano, Jigawa, Niger, Kogi, Plateau, and Borno have either passed or are actively considering their electricity laws. These sub-national electricity laws, when fully implemented, will enable:
-Deployment of mini-grids to electrify rural and underserved communities.
-Development of small hydro projects to harness local energy resources.
-Development of localised state-level transmission infrastructure.
-Improved distribution networks tailored to local needs.
-Regulatory oversight by State Electricity Regulatory Commissions,
-Attract private sector investment and drive industrial growth.
On investment: Centralised control had already failed
For over a decade, investment in the Nigerian Electricity Supply Industry (NESI) stagnated under centralised regulation. GENCOs operated without bankable Power Purchase Agreements (PPAs), while DISCOs under NERC underperformed, leading to multiple takeovers. Grid expansion stalled, and tariff setting became politicised. Liquidity challenges stem not from decentralisation but from delayed cost-reflective tariffs, inconsistent policies, and bureaucratic bottlenecks. With the constitutional amendment and under the EA 2023, states can now de-risk energy investments by offering stable, bankable regulatory frameworks. They can develop mini-grid and off-grid systems, attract private capital, and promote embedded generation. This flexibility enables smarter distribution planning and energy diversification to drive investment and improve electricity access.
Cross-subsidisation and equity require innovation, not a reversion to central control
The article laments the erosion of cross-subsidisation, yet fails to note that the structure of DISCOs as monopolies across multiple states has not translated to equitable service. Northern states (and indeed states in other regions) have long been underserved, not due to lack of cross-subsidisation, but because the central market could not target investments where needed. The Electricity Act 2023 does not preclude regional coordination. In fact, Section 34 encourages interstate collaboration for regional markets, resource sharing, and transmission development. The North-West is already exploring this.
What we should be doing instead
Rather than seeking to reverse the Act, we should:
• Support states to pass smart electricity laws aligned with investment needs and consumer protection.
• Enable interstate collaboration for power pooling and economies of scale.
• Harmonise technical standards and regulatory codes through national platforms like NERC and the National Council on Power.
• Incentivise states to focus on performance-based regulation.
• Ensure transparency in asset transfers
Written by ENGR. AMINU GANDA
