ARRANGEMENT OF SECTIONS PART I — PRELIMINARY PROVISIONS 1. Objectives of the Act 2. Application and scope of the Act PART II — NATIONAL INTEGRATED ELECTRICITY POLICY AND STRATEGIC IMPLEMENTATION PLAN 3. National Integrated Electricity Policy and Strategic Implementation Plan 4. Periodic review of the National Integrated Electricity Policy 5. Supervisory powers of the Minister and functions of the Ministry responsible for Power PART III — DEVELOPMENT OF A COMPETITIVE NATIONAL ELECTRICITY MARKET 6. Legal validity of pre-privatization and post-privatization 7. Competition during the post-privatization stage 8. Declaration of competitive electricity markets 9. Sale and purchase of electricity and ancillary services 10. Market rules and grid code 11. Commission’s directive respecting eligible customers 12. Commission’s directive respecting competition transition charges 13. Commission’s determination respecting competition transition charges 14. Public hearing respecting competition transition charges PART IV — INCORPORATION AND LICENSING OF ISO 15. Incorporation and licensing of the ISO 16. Subscribers to the constitutional documents of the ISO and its objects 17. Functions of the ISO 18. Engagement of technical support 19. Transfer of employees, assets, and liabilities 20. Conclusive evidence 21. Enforcement or continuation of any cause of action or proceedings 22. Limitation of action against ISO 23. Release from liability or obligation 24. Guarantee or surety 25. Provision of records to the ISO 26. Further order amending a transfer order. 27. Directions to the TCN on matters related to transition 28. Transfer of employees to the ISO 29. Exemption from stamp duty or other charges 30. Composition and appointment of the Board of the ISO 31. Term of office of members of the Board 32. Protection of land belonging to the ISO PART V — ESTABLISHMENT, FUNCTIONS AND POWERS OF THE NIGERIAN ELECTRICITY REGULATORY COMMISSION 33. Establishment of the Nigerian Electricity Regulatory Commission 34. Functions and powers of the Commission 35. Appointment of Commissioners 36. Terms of office and conditions of service of Commissioners 37. Conditions for appointment of Commissioners 38. Vacation of office by Commissioner 39. Dismissal and suspension of Commissioner 40. Filling of vacancies in the Commission 41. Chairman and Vice Chairman of the Commission 42. Meetings and procedure of the Commission 43. Remuneration and expenses of Commissioners 44. Commissioners to disclose certain connections and interests 45. No invalidity of decisions and acts of the Commission 46. Proceedings of the Commission 47. Decisions and orders of the Commission 48. Commission to give notice to interested parties 49. Commission to consult experts on technical questions 50. Question of law may be referred to the Federal High Court 51. Rehearing and appeals 52. Annual programmes and budgets of the Commission 53. Funds of the Commission 54. Surplus funds of the Commission 55. The financial year of the Commission 56. Accounts of the Commission 58. Powers of the auditors 59. Execution of contracts and instruments by the Commission 60. Reports of the Commission 61. Staff of the Commission 62. Exemption from Liability for the Commission PART VI — LICENSING 63. Authorised persons to generate and transmit electricity 64. General duties of licensee 65. General licenses 66. Transmission licenses 67. System operation license 68. Distribution and supply licensees 69. Trading licenses 70. Restriction on licenses 71. Application and procedure for license 72. Terms and Conditions of licenses 73. Removal of licensees 74. Amendment of licenses 75. Intervention powers in failing licensees 76. Enforcement of license 77. Sale of undertakings of licenses 78. Vesting of undertaking in the purchaser 79. Provision where no purchase takes place PART VII — GENERATION OF ELECTRICITY 80. Promotion of generation from renewable energy 81. Directions to generation companies PART VIII — ESTABLISHMENT OF THE NATIONAL HYDROELECTRIC POWER PRODUCING AREAS DEVELOPMENT COMMISSION 82. Establishment of the National Hydroelectric Power Producing Area Development Commission 83. Headquarters of the N-HYPPADEC 84. Establishment, membership and powers of the Governing Council 85. Supplementary provisions relating to the Council 86. Power of the Council 87. Tenure of office of members of the Council 88. Cessation of office 89. Functions of the N-HYPPADEC 90. Establishment of Directorates of the N-HYPPADEC 91. Management Committee 92. Advisory Committee 93. Appointment of the Managing Director 94. Pension matters 95. Fund of the N-HYPPADEC 96. Expenditure of the N-HYPPADEC 97. Powers to accept gifts 98. Borrowing power 99. Annual estimates and expenditure 100. Quarterly report 101. Annual report 102. Establishment of the Monitoring Committee 103. Office premises of the N-HYPPADEC 104. Directives by the President 105. Limitation of suits against the N-HYPPADEC 106. Notice of summons 107. Indemnity PART IX — TRANSMISSION OF ELECTRICITY 108. Demarcation of transmission into National Control Centre 109. Private sector investment in transmission network 110. Fair spread of private sector investment in transmission network 111. Commission to issue directives to the transmission licensee 112. Public and private partnerships to facilitate transmission of electricity within a State PART X — DISTRIBUTION AND SUPPLY OF ELECTRICITY 113. Distribution and Supply Network and Renewable Energy 114. Installation of meters 115 Disconnection of supply in default of payment PART XI — TARIFFS AND SUBSIDIES 116. Activities subject to tariff regulation 117. Provision of electricity subsidy by government PART XII — ACQUISITION OF LAND AND ACCESS TO LAND 118. Procedure for acquisition of land and land access rights for electricity projects PART XIII — CONSUMER PROTECTION AND LICENSEE PERFORMANCE STANDARDS 119. Consumer protection standards 120. Performance standards and codes PART XIV — COMPETITION AND MARKET POWER 121. Competition and market power PART XV — THE POWER CONSUMER ASSISTANCE FUND 122. Establishment of the Power Consumer Assistance Fund 123. Contribution rates for the PCAF 124. Contribution payments for the PCAF 125. Payments from the PCAF 126. Fine for non-payment of money owed PART XVI — RURAL ELECTRIFICATION AGENCY 127. Establishment of the Rural Electrification Agency 128. Objectives of the Agency 129. Functions and powers of the Agency 130. Establishment and composition of the Governing Board of the Agency 131. Tenure of members of the Board 132. Cessation of membership of the Board 133. Allowances of the Chairman and Non-Executive members of the Board 134. Powers of the Board 135. Meeting and proceedings of the Board 136. Secretary of the Board 137. Managing Director and chief executive officer of the Agency 138. Other staff of the Agency 139. Pension and gratuity 140. Structure of the Agency 141. Functions of Executive Directors and Directorates of the Agency 142. Establishment of the Rural Electrification Fund 143. Purpose of the REF 144. Management of the REF 145. Contribution rates for the REF 146. Contribution payment for REF 147. Criteria for allocation 148. Fine for non-payment of amount owed 149. Expenditure of the Agency 150. Exemption from income tax 151. Supervisory powers of the Minister 152. States Rural Electrification Boards and Local Government Rural Electrification Committees 153. Relationship between the Agency and State Rural Electrification Boards 154. Progress reports 155. Monitoring of rural electrification projects 156. Power to accept gifts 157. Power to borrow 158. Estimates of the Agency 159. Accounts and audits 160. Annual report 161. Limitation of suits against the Agency 162. Restriction on execution of suits against the property of the Agency 163. Indemnity PART XVII — RENEWABLE ENERGY AND ENERGY EFFICIENCY 164. Communication to promote the development and utilization of renewable energy 165. Commercial activities for renewable energy 166. Renewable energy incentives and standards 167. Considerations for renewable purchase obligation 168. Feed-in tariffs rates 169. Approval of feed-in tariffs rates 170. Publication of feed-in tariff rates 171. Connection to transmission and distribution systems PART XVIII — NIGERIAN ELECTRICITY MANAGEMENT SERVICES AGENCY 172. Establishment of Nigerian Electricity Management Services Agency 173. Establishment and membership of the Governing Board 174. Tenure of office 175. Powers of the Governing Board 176. Objectives and functions of the NEMSA 177. Appointment of the Managing Director and chief executive officer and other staff of the NEMSA 178. Service to be subject to the Pension Reform Act 179. Funds of the NEMSA 180. Annual report 181. Access to premises and other enforcement powers 182. Supervisory powers of the Minister 183. Regulations 184. General provisions PART XIX — NATIONAL POWER TRAINING INSTITUTE OF NIGERIA 185. Establishment of the National Power Training Institute of Nigeria 186. Functions and powers of the Institute 187. Establishment and membership of the Governing Council 188. Functions of the Council of the Institute 189. Tenure of members of the Council of the Institute 190. Cessation of membership of the Council of the Institute 191. Allowances of the Chairman and members of the Council of the Institute 192. Filling of vacancies in the Council of the Institute 193. The Director-General and other staff of the Institute 194. The Secretary of the Council 195. Academic Board of the Institute 196. Functions and powers of the Academic Board 197. Composition of the Academic Board 198. Financial statement, annual budget and estimates 199. Annual report of the Institute 200. Fund of the Institute 201. Expenditure of the Institute 202. Establishment of the Power Training Fund 203. Utilization of the Power Training Fund 204. Exemption of Funds from income tax 205. Supervisory powers of the Minister 206. Limitation of suits against the Institute 207. Power to make regulations PART XX — OFFENCES AND PENALTIES 208. Theft of electricity 209. Theft of electric lines and materials 210. Offence of receiving stolen electricity 211. Interference with meters or works of licensees 212. Negligently breaking or damaging electricity materials 213. Intentionally disrupting power supply 214. Offence relating to damage to public streetlights 215. Contravention of regulations or orders 216. False declaration 217. Offences by companies 218. Abetment 219. Unlawful use of information by inspector 220. Obstruction, impersonation 221. Power to prosecute 222. Power to compound offences 223. Jurisdiction to try offences PART XXI — MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS 224. Exemption of electric plants from attachment in certain cases 225. Power of the licensee to enter premises and to remove fittings or other apparatuses of the licensee 226. Power of the Commission to make regulations 227. Local content in the power sector 228. Protection of investments in the power sector 229. Functions of the Council PART XXIII —FINAL PROVISIONS 230. Consequential and transitional provisions 231. Repeal and Savings provisions 232. Interpretation 233. Citation ELECTRICITY ACT, 2023 An Act to repeal the Electric Power Sector Reform Act, No. 6, 2005 and enact the Electricity Act, 2023 to consolidate the laws relating to the Nigerian electricity supply industry, provide a comprehensive legal and institutional framework for the power sector in Nigeria in the areas of electricity generation, transmission, system operation, distribution, supply, trading, enforcement of consumer rights and obligations, provide for a holistic integrated resource plan and policy that recognizes all sources for the generation, transmission and distribution of electricity, including the integration of renewable energy to Nigeria’s energy mix and attract investments; and for related matters. [COMMENCEMENT] [06TH DAY OF JUNE, 2023] ENACTED by the National Assembly of the Federal Republic of Nigeria — PART I — PRELIMINARY PROVISIONS 1. Objectives of the Act The primary objective of this Act is to provide a comprehensive legal and institutional framework to guide the operation of a privatized, contract and rule-based competitive electricity market in Nigeria and attract through transformative policy and regulatory measures, private sector investments in the entire power value chain of the Nigerian Electricity Supply Industry (in this Act referred to as “the NESI”), and specifically, the Act seeks to achieve the following objectives — (a) provide an ideal legal and institutional framework to leverage on the modest gains of the privatization phase of electric power sector in Nigeria to accelerate growth in power generation capacity and improve utilization of generated power through increased investments in new and efficient power generation technology and revamping existing power plants; (b) promote policy and regulatory measures to ensure the expansion of power transmission networks in Nigeria to address any imbalance in the existing transmission infrastructure; (c) stimulate policy and regulatory measures to generally scale up efficient power generation, transmission, and distribution capabilities of the power sector in Nigeria with a view to achieve a national electricity access targets and attaining the highest per capita power consumption in Africa within a reasonable time frame; (d) stipulate consequential, transitional and saving provisions regarding reforms made under the provisions of the Electric Power Sector Reform Act, No. 6, 2005 (in this Act referred to as “the Repealed Act”); (e) provide clear guide and legal basis for a phase-wide development of the Nigerian electricity supply industry since the conclusion of the privatization phase as implemented under the provisions of the Repealed Act; (f) promote the development of a competitive electricity market; (g) stimulate policy measures that will attract investments across the Nigerian electricity value chain to re-energize economic growth, drive job creation and improve the living conditions of Nigerians; (h) provide a clear legal and institutional framework for the formulation and adoption of a National Integrated Electricity Policy and Implementation Plan; (i) stimulate policies to address technology limitation and outdated infrastructure that are responsible for value chain losses in the NESI by attracting sustainable investments in new and efficient power generation technology and revamping existing power plants; (j) eliminate through policy and regulatory measures, barriers to investments in generation, transmission, distribution, and related sub-sectors in the electricity industry in Nigeria; (k) promote policies and regulatory measures to increase geographic coverage in power generation, transmission, distribution and supply of electricity in Nigeria; (l) provide a framework to stimulate the development and utilization of renewable energy sources and create an enabling environment to attract investment in renewable energy sources in order to increase the contribution of renewable energy to the energy mix; (m) provide a framework for improvement of access to electricity in rural, unserved, underserved, peri-urban and urban areas through the use of conventional sources and renewable energy off-grid and mini-grid solutions; (n) promote indigenous capacity in technology for renewable energy sources through a framework for local content in the Nigerian electricity supply industry; (o) promote public education on renewable energy production and consumption to increase the generation and consumption of electricity from renewable sources; (p) recognise third-party investments in NESI infrastructure by the private and public sectors; (q) provide a clear framework for cross-border electricity trade in the interest of national security and energy self-sufficiency; (r) promote frameworks for security of electricity infrastructure, prescribe effective punitive measures against electricity theft and other offences peculiar to the NESI; and (s) strengthen the relationship between federal electricity market and state electricity market. 2. Application and scope of the Act (1) Subject to the provisions of section 4 and paragraphs 13, 14, and 15 of part II, of the Second Schedule to the Constitution, the provisions of this Act shall apply throughout the Federal Republic of Nigeria and with respect to all aspects and segments of the power sector value in Nigeria. (2) Nothing in this Act shall invalidate — (a) any law passed by the House of Assembly of a State with respect to all aspects of generation, transmission, system operation, distribution, supply and retail of electricity within that State; (b) any law passed by the House of Assembly of a State regarding the establishment, promotion and management of State electricity power stations; (c) any law passed by the House of Assembly of a State to sanction the establishment of a State electricity market, the establishment of a State electricity regulatory authority or any entity by whatever appellation with powers to regulate such markets; (d) any collaboration between States and Local Governments and the Federal Government for rural electrification, or between the States and Local Governments and distribution licenses to ensure electricity access to rural, unserved and underserved areas, promote investments in electricity or provision of electricity within States or Local Government Areas; or (e) any law passed by the House of Assembly of a State to sanction the establishment of a State electricity market and State Integrated Electricity Policy and Strategic Implementation Plan. PART II — NATIONAL INTEGRATED ELECTRICITY POLICY AND STRATEGIC IMPLEMENTATION PLAN 3. National Integrated Electricity Policy and Strategic Implementation Plan (1) The Federal Government through the Ministry for power shall, within one year from the commencement of this Act, initiate the process for the preparation and publication in the Federal Government Gazette, an Integrated National Electricity Policy and Strategic Implementation Plan in consultation with relevant government authorities and other stakeholders to guide the overall development of the electric power sector in Nigeria. (2) The National Electricity Policy and Strategic Implementation Plan adopted by the Federal Government under the provisions of subsection (1) shall encompass the following aspects relevant to the development of electric power sector in Nigeria — (a) development of electric power sector based on optimal utilization of resources such as coal, natural gas, nuclear substances and materials as well as renewable energy sources such as, solar, wind, hydro, hydrogen and other renewable sources of energy; (b) captive generation or stand-alone system for generation of electricity for rural areas and non-conventional energy system; (c) rural electrification and for bulk purchase of power and management of local distribution in rural areas; (d) public private partnerships for provision of access to electricity to all areas including villages, hamlets through rural electricity infrastructure and electrification of households; (e) power-source specific policies including waivers and subsidies that will stimulate development of renewable energy; (f) overall development of the electricity value chain in Nigeria with emphasis on alignment of expansion of generation, transmission, distribution and supply infrastructure to ensure reliability of supply and minimize losses; and (g) any other aspect of the power sector that the Federal Government may determine that it requires clear policy direction bearing in mind changes and new global developments in the sector. (3) The National Integrated Electricity Policy and Strategic Implementation Plan adopted under subsections (1) and (2), shall be approved by the Federal Executive Council. 4. Periodic review of the National Integrated Electricity Policy (1) The National Integrated Electricity Policy and Strategic Implementation Plan approved by the Federal Executive Council ( in this Act referred to as “FEC”), under section 3 (3) of this Act, shall be reviewed or revised as required, but not later than every five years. (2) The National Integrated Electricity Policy and Strategic Implementation Plan or the revised version referred to under section 3 of this Act and subsection (1) respectively shall be initiated, formulated, deliberated upon, and adopted by the Ministry of Power in accordance with the provisions of this Act and same shall be approved by the FEC before the publication in the Federal Government Gazette for implementation. TO READ MORE, DOWNLOAD
LAWS OF THE FEDERAL REPUBLIC OF NIGERIA
