Electricity Act crisis escalates as states, FG, and labour clash over power control, tariffs, and worker rights. Stakeholders warn of legal and sectoral collapse

The Electricity Act Crisis is intensifying, just two years after President Bola Tinubu signed the 2023 Act into law to decentralize Nigeria’s power sector.

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What was once praised as a visionary reform is now mired in controversy, with mounting disputes between state regulators, federal agencies, distribution companies, and labour unions.

The Act granted states the right to generate, transmit, and distribute electricity independently. But its implementation has triggered turf wars.

The Enugu State Electricity Regulatory Commission’s tariff reduction from ₦209 to ₦160/kWh for Band A customers sparked backlash from power generators, federal authorities, and DisCos, who claim the subsidy-based pricing threatens sector solvency.

Joy Ogaji of the Power Generation Companies Association warned that such tariffs are built on “nonexistent subsidies,” risking deeper debts in a sector already burdened with over ₦5 trillion in unpaid obligations.

Meanwhile, a Senate amendment bill seeking to reassert federal control and curb labour action has inflamed tensions.

The bill, which declares electricity an “essential service,” bans strikes without a Minimum Service Agreement. Labour unions have rejected this outright, calling it oppressive and unconstitutional.

States and stakeholders fear the proposed changes undermine the decentralisation spirit of the original law. “It’s a backdoor return to centralisation,” said a joint forum of state power commissioners.

Also read: Electricity Subsidy Hits N1.94tn in 2024 Amid Rising Debts, Forex Pressure

With Lagos, Ondo, Plateau, and others joining Enugu’s tariff reform path, the Electricity Act Crisis is fast becoming a national flashpoint. Observers say only genuine collaboration and respect for federalism can salvage Tinubu’s landmark policy from failure.