The Electricity Act 2023, simply: why your state may now make your power rules

For most of Nigeria's history, electricity was a federal matter. Abuja decided who could sell power, at what price, and under what rules. The Electricity Act 2023 changed that.

What the law does

President Bola Tinubu signed the Electricity Act in June 2023. Its biggest change is simple to state: each state can now make its own laws to create and regulate an electricity market within the state.

That covers generating, transmitting and distributing power inside the state's borders. A state that passes such a law can set up its own regulator, which can then license companies and approve tariffs locally.

Until a state does this, NERC keeps regulating electricity there. So the country now has a mix: some states run their own markets, and the rest remain under NERC.

How far it has gone

Taking over is a process. A state has to pass its law, set up its regulator, and then NERC hands over oversight. In mid-2026, NERC's chairman, Musiliu Oseni, said oversight had been transferred to 16 states. Press counts during 2026 ranged from 15 to 17 as more states completed the process.

Why it matters to you

Prices can differ by state. A state regulator can set tariffs that differ from NERC's. Enugu's regulator, for example, cut the Band A rate to ₦160 per kWh in July 2025, against NERC's ₦209.50.

Complaints may go somewhere new. If your state has its own regulator, that is where unresolved complaints about your DisCo will end up.

More local power projects. States, companies and communities can build and license generation, mini-grids and local networks without waiting on the federal government.

What it does not do

The law does not fix supply overnight. Power stations still need gas, the grid still needs investment, and DisCos still need to collect enough to pay for the power they buy. What it changes is who makes the rules, and that brings decisions closer to the people affected by them.