There may be a turning point for Nigeria’s ailing electricity sector, as the Senate yesterday, debated the general principles of the Electricity Act (Amendment) Bill, 2025.
The legislative initiative was total and aimed at rescuing the power industry from systemic collapse.
The bill to debate the general principles of the Electricity Act (Amendment) Bill, 2025, was sponsored by Senator Enyinnaya Abaribe (Abia South), proposes 28 substantial amendments to the Electricity Act, 2023, in a bid to untangle the deep-rooted legal, operational, and financial challenges afflicting the Nigerian Electricity Supply Industry (NESI).
Abaribe, who led the debate during plenary, delivered a stark warning: Nigeria’s power sector is teetering dangerously on the brink, burdened by trillions of naira in unpaid debts, a fragmented regulatory environment, and rampant infrastructure vandalism.
“The Nigerian power sector is hanging on a cliff and requires immediate and drastic action to rescue it from total collapse,” Abaribe declared.
The proposed amendment bill draws heavily from the findings of a comprehensive diagnostic review carried out by the Senate Committee on Power.
The committee, in its report, painted a grim picture of a sector in turmoil, unable to deliver on its mandate despite successive waves of reform.
At the heart of the bill are measures designed to bring clarity, accountability, and stability to a sector long mired in controversy and inefficiency.
It seeks to strengthen coordination between the federal and state governments in regulating electricity in the aftermath of the constitutional amendment that moved power matters to the concurrent legislative list.
The amendment also introduces stricter penalties for the vandalism of electricity infrastructure, and establishes a clearer transitional framework between the Nigerian Electricity Regulatory Commission (NERC) and state-level regulators.
It also creates legal backing for host community engagement in electricity projects.
Additionally, it provides a foundation for implementing targeted subsidies through the Power Consumer Assistance Fund, aimed at protecting low-income consumers from the burden of rising electricity costs.
Abaribe emphasised that the bill does not seek to place any new financial burden on the federal government.
Rather, it aims to eliminate ambiguities in the existing law, enhance regulatory oversight, and introduce legal tools to combat sabotage and poor governance in the sector.
“This amendment is not about more spending—it’s about smarter laws and enforcement,” he said.
The Senate floor saw resounding support for the bill, with lawmakers from both sides of the aisle describing it as “bold,” “timely,” and “transformative.”
Senator Muhammad Tahir Monguno (Borno North) likened the bill to the groundbreaking Petroleum Industry Act (PIA).
He said it has the potential to revolutionise the power sector in much the same way the PIA reshaped Nigeria’s oil and gas industry.
He recounted how prolonged vandalism had left entire communities in his constituency without electricity for over six months, expressing hope that the bill’s punitive provisions would finally serve as a deterrent.
In his contribution, Senator Lola Ashiru (Kwara South), Vice Chairman of the Senate Committee on Power, said the amendment was a necessary evolution in the country’s reform journey.
He warned that unless the growing debts owed to generation, transmission, and distribution companies were urgently addressed, the sector could face irreversible damage.
However, Senator Muhammad Adamu Aliero, took a more hardline stance, advocating capital punishment for repeat offenders involved in the destruction of power infrastructure.
He also lamented the continuing financial burden on the federal government despite the privatisation of the power sector, calling it a “privatisation without results.”
Senator Solomon Olamilekan Adeola (Ogun West), Chairman of the Senate Committee on Appropriations, raised the alarm over insufficient budgetary provisions to key agencies like the Nigerian Bulk Electricity Trading Plc (NBET).
He said the situation was fuelling defaults and even contractor-led sabotage.
He said budget allocations to MBET are grossly inadequate, making it difficult for the agency to meet its contractual obligations to power generation companies — ultimately cascading down to consumers through inefficient service delivery.
In a particularly candid contribution, Senator Garba Maidoki (Kebbi South) criticised the conduct of distribution companies (DISCOs).
He accused them of consistently ignoring Senate resolutions while overcharging consumers and defaulting on payments to gas suppliers such as the NNPC.
“Even as a Senator, I struggle to pay my electricity bills,” Maidoki revealed.
His declaration, however, prompted murmurs across the chamber.
He called for a complete restructuring of the electricity tariff model, which he said disproportionately penalises consumers for failures beyond their control.
Other lawmakers, including Senator Buhari Abdulfatai (Oyo North) and Senator Sahabi Yaú (Zamfara North), echoed calls for tougher penalties against vandals.
They also decried the ongoing practice where DISCOs claim ownership of electricity transformers purchased by local communities through communal efforts or public funds.
As the debate concluded, the consensus within the Red Chamber was clear: The Electricity Act (Amendment) Bill, 2025, offers a rare opportunity to realign Nigeria’s power sector with the goals of transparency, sustainability, and universal access.
The bill has now been referred to the Senate Committee on Power for further legislative work and is expected to return for clause-by-clause consideration in the coming weeks.
If passed, it could usher in a new era of reform and finally offer Nigerians the stable electricity supply that has long eluded them.
