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By Oke Epia, E-mail: sostainability01@gmail.com | WhatsApp: +234 8034000706
Trends and Threads
By Mmachi Okafor
Nigeria’s efforts to strengthen its renewable vitality sector may take a major flip with the proposed Electricity Act (Amendment) Bill, 2025, which seeks to ascertain a devoted regulatory authority liable for overseeing the event, promotion, and utilisation of renewable vitality sources throughout the nation.
Sponsored by Hon. Afam Victor Ogene, the invoice proposes amendments to the Electricity Act, 2023, with the first purpose of restructuring the regulatory framework governing renewable vitality technology, distribution, funding and consumption in Nigeria.
At the centre of the proposed laws is the institution of the National Authority for Renewable Energy (NARE), an impartial regulatory establishment that might assume key tasks at present assigned to the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF).
The invoice seeks to centralise regulatory and supervisory tasks regarding renewable vitality underneath a single establishment, making a extra coordinated framework for the event and utilisation of renewable vitality sources.
The scope of the proposed laws extends past electrical energy technology to incorporate renewable vitality infrastructure growth, licensing, distribution, funding promotion, technological innovation, client safety, rural electrification and the institution of regulatory requirements.
Under the proposed framework, NARE would oversee actions involving renewable vitality applied sciences reminiscent of photo voltaic, wind, hydro, geothermal, biomass, hydrogen, tidal and wave vitality. The authority would additionally promote analysis into rising applied sciences and set up technical requirements to help the environment friendly technology and utilisation of renewable vitality.
A serious element of the invoice is its emphasis on increasing electrical energy entry to underserved and unserved communities, significantly in rural areas the place insufficient energy infrastructure continues to restrict financial alternatives and social growth.
To deal with this problem, the laws proposes the promotion and implementation of mini-grid and off-grid renewable vitality programs in distant communities, islands, and different places with restricted entry to traditional electrical energy networks.
The proposed enlargement of decentralised electrical energy infrastructure is meant to enhance entry to energy whereas encouraging the productive use of renewable vitality in communities which have traditionally remained exterior the attain of dependable electrical energy companies.
The invoice additionally identifies bioenergy know-how as an essential element of rural electrification, reflecting its broader goal of diversifying Nigeria’s vitality sources and lowering extreme dependence on standard electrical energy technology.
Beyond increasing electrical energy entry, the proposed laws seeks to create a beneficial funding atmosphere able to attracting private-sector participation in renewable vitality growth.
It empowers the proposed authority to facilitate monetary, fiscal, regulatory and risk-sharing incentives for native producers of renewable vitality merchandise. These measures are supposed to encourage home manufacturing, stimulate funding and help the expansion of renewable vitality companies.
The laws additional supplies for collaboration between NARE and the Federal Ministry liable for Finance to introduce tax incentives and aid measures that might encourage renewable vitality technology, consumption and venture implementation.
Such incentives may assist scale back monetary obstacles dealing with renewable vitality builders, though their effectiveness would rely on the particular fiscal insurance policies adopted and the consistency of their implementation.
Another vital goal of the invoice is to ascertain a structured regulatory atmosphere for renewable vitality operators and shoppers.
Under the proposed association, NARE could be liable for licensing and regulating people and organisations engaged in renewable vitality technology, distribution, provide and buying and selling. It would additionally approve tasks, set up working codes, monitor compliance and resolve disputes inside the trade.
The authority would have powers to implement regulatory requirements, examine licensed services and impose sanctions for violations of operational necessities.
These provisions are supposed to advertise accountability, enhance service supply and be certain that renewable vitality actions function inside a longtime authorized and institutional framework.
Consumer safety additionally types an essential a part of the laws. The invoice proposes the institution of applicable client rights and obligations whereas requiring renewable vitality pricing and tariffs to be honest and balanced for shoppers, buyers, licensees and different stakeholders.
This strategy seeks to stability the industrial pursuits of renewable vitality buyers with the necessity to make electrical energy companies accessible and inexpensive to shoppers.
The proposed laws additionally recognises the significance of coordination between renewable vitality regulators and present electrical energy establishments.
Although NARE would assume main tasks for renewable vitality regulation, the invoice supplies for collaboration with NERC on regulatory requirements, licensing procedures, grid connections, energy buy agreements, tariffs, coverage growth and dispute decision.
This association is meant to help the mixing of renewable electrical energy into Nigeria’s wider energy system whereas sustaining coordination between the proposed renewable vitality authority and present electricity-sector establishments.
However, the success of this framework would rely on clearly outlined tasks and efficient cooperation between the establishments to forestall overlapping mandates, regulatory uncertainty and administrative delays.
A very vital provision of the invoice considerations the financing of the proposed authority.
The laws seeks to allocate 40 per cent of the Rural Electrification Fund’s annual sources to NARE for renewable vitality growth and related actions. It additionally identifies licensing charges, prices, National Assembly allocations and different lawful sources of revenue as potential funding channels for the authority.
This proposed funding association is designed to supply monetary sources for renewable vitality programmes, infrastructure growth and regulatory operations.
Nevertheless, transferring a considerable proportion of the Rural Electrification Fund to a brand new establishment raises essential questions concerning the monetary implications for present rural electrification programmes and the necessity to make sure that sources proceed to achieve communities requiring electrical energy entry.
The invoice additionally supplies for the institution of a governing board liable for overseeing the authority’s insurance policies, funds and institutional administration.
The proposed board would come with representatives from Nigeria’s six geopolitical zones, related federal ministries, the Central Bank of Nigeria, the Renewable Energy Association of Nigeria and Women in Renewable Energy.
The inclusion of those stakeholders displays an intention to advertise broader institutional participation in renewable vitality governance.
Furthermore, the laws seeks to encourage gender mainstreaming and native content material growth inside the renewable vitality trade.
These provisions may create alternatives for larger participation by girls, indigenous companies, technical professionals and native producers within the increasing renewable vitality market.
Research, innovation and capability constructing additionally characteristic prominently among the many invoice’s goals.
The proposed authority could be liable for selling analysis into renewable vitality applied sciences, supporting infrastructure growth, establishing technical requirements and implementing programmes aligned with worldwide finest practices.
By encouraging technological development and abilities growth, the invoice seeks to strengthen Nigeria’s capability to develop and utilise renewable vitality sources whereas supporting the emergence of a extra aggressive home renewable vitality trade.
Public training is one other essential side of the proposed laws. NARE could be anticipated to advertise consciousness of renewable vitality manufacturing and consumption, serving to people, communities and companies perceive the alternatives related to various vitality applied sciences.
The invoice additionally extends its consideration to renewable vitality tasks past electrical energy technology, offering a broader framework for the productive utilisation of renewable vitality sources throughout totally different sectors of the financial system.
From an financial growth perspective, the laws presents alternatives to help funding, develop vitality infrastructure, stimulate native manufacturing and enhance electrical energy entry for companies and households.
Reliable renewable electrical energy may help small companies, agricultural processing, healthcare services, instructional establishments and different financial actions, significantly in communities the place insufficient energy provide stays a serious impediment to growth.
However, these potential advantages would rely on the profitable implementation of the proposed regulatory reforms, sufficient financing, clear venture administration and efficient coordination amongst related authorities companies.
The invoice’s central goal is due to this fact not merely to advertise renewable vitality adoption however to restructure the establishments liable for regulating and growing the sector.
By proposing a devoted nationwide authority, the laws seeks to ascertain a extra coordinated system for renewable vitality governance, strengthen regulatory oversight, encourage funding, develop electrical energy entry and promote the sustainable utilisation of Nigeria’s renewable vitality sources.
Nevertheless, the proposal raises essential coverage questions on whether or not creating one other regulatory establishment would enhance effectivity or introduce further administrative prices and institutional complexities.
The switch of tasks from established electricity-sector companies would require cautious administration to make sure continuity in present programmes, stop duplication of capabilities and defend investments already dedicated to renewable vitality growth.
Ultimately, the Electricity Act (Amendment) Bill, 2025, represents a proposed institutional reform aimed toward strengthening Nigeria’s renewable vitality sector by centralised regulation, funding incentives, technological growth and expanded electrical energy entry.
Its potential contribution to financial progress and sustainable growth would rely not solely on the institution of NARE but additionally on the effectiveness of its regulatory framework, the transparency of its funding preparations and its capability to translate legislative goals into measurable enhancements in electrical energy entry.
For Nigeria, the place electrical energy shortages proceed to constrain productiveness and financial alternatives, the importance of the proposed laws lies in whether or not its institutional reforms can ship dependable, inexpensive and sustainable vitality to households, companies and communities throughout the nation.
