Benefits of the newly signed electricity act bill by President Tinubu

President Tinubu has signed the Electricity Act billed which was initially passed in the legislative assembly proposed by the former Buhari administration with the aim to see Nigeria become a sustainable energy country. It is not a strange thing in Nigeria that power is one of the basic amenities that the vast majority of the most populated African country lacks.

Energy is an important integral of a successful society as it helps to drive growth and build a sustainable society that attracts local and international businesses to thrive. The new bill on the other hand seeks to encourage greater involvement of private businesses in Nigeria’s power sector and promote competition by breaking the monopoly on electricity generation, transmission, and distribution.

Additionally, it is good to know that the new signing of the Electricity Act Bill will in these listed ways be beneficiary to Nigerian citizens as;

1. Private Ownership

The passage means that anyone may construct, own, or operate an undertaking for generating electricity not exceeding one megawatt in aggregate at a site, or an undertaking for distribution of electricity with a capacity not exceeding 100 kilowatts in aggregate at a site, or such other capacity as the Commission may determine from time to time, without a license.

2. More Light For Everyone

Electricity generation licensees are obligated to meet renewable generation obligations as may be prescribed by the Nigerian Electricity Regulatory Commission. This in turn means, electricity generating companies will be mandated to either generate power from renewable energy sources, purchase power generated from renewable energy, or procure any instrument representing renewable energy generation.

3. Accountability

Lawmakers are granted the power to carry out oversight responsibilities and function over the NESI through its respective Committees on Power in the Senate and House of Representatives. The Nigerian Electricity Regulatory Commission will be able to regulate the electricity sector within Nigeria so as to ensure citizens have enough.

4. State Empowerment

The Electricity Act Bill will empower states, companies, and individuals to generate, transmit and distribute electricity, by the order of the bill states can regulate their electricity markets by issuing licenses to private investors who can operate mini-grids and power plants within the state. However, the Act precludes interstate and transnational electricity distribution. Additionally, the commission can transition regulatory responsibilities from itself to state regulators when they are established, or until a state has passed its electricity market laws, NERC will continue to regulate electricity businesses in such states.

Although many states do not have electricity market laws, only three states -Lagos, Edo, and Kaduna can start regulating their markets. But for other states without such laws, NERC will regulate their electricity generation and transmission. As this law goes into effect it beams a light of hope that Nigeria will one day be not only a friendly county where businesses can thrive but also a nation that can be proud of its electricity and perhaps one day celebrate decades of uninterrupted power supply.

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