Senate Approves Amendment Bill to Strengthen Electricity Law And Curb ₦4tr Debt

The Nigerian Senate has taken a significant step toward salvaging the nation’s struggling power sector by passing the Electricity Act (Amendment) Bill, 2025 for second reading.

The bill, sponsored by Senator Enyinnaya Abaribe (Abia South), aims to address critical flaws in the 2023 Electricity Act, particularly regulatory weaknesses and enforcement gaps that have left the sector vulnerable to mismanagement and sabotage.

While leading the debate, Senator Abaribe, who also chairs the Senate Committee on Power, raised concerns over mounting inefficiencies and financial irregularities in the sector. He noted that the Federal Government currently owes over ₦4 trillion within the electricity industry.

“The current law is weak on penalties, lacks full implementation, and doesn’t provide enough regulatory clarity — especially on funding structures, labour issues in essential services, and the role of states under the new constitution,” Abaribe said. “Electricity is an essential service. No one should hold the country to ransom under the guise of a strike. We must remove ambiguities and make the law implementable.”

He also criticised power distribution companies for defaulting on payments for electricity supplied, calling it a key contributor to the sector’s instability.

Backing the bill, Senator Adamu Aliero condemned the continued government expenditure in a supposedly privatised sector. He described it as a contradiction and a financial burden on the state.

“We’ve privatised power, yet trillions of naira are still being spent on behalf of private companies,” Aliero said. “More importantly, the growing threat of vandalism must be addressed. Vandals are sabotaging national assets and should face capital punishment if necessary.”

The proposed amendment introduces key reforms such as:

• Criminalising electricity infrastructure vandalism;
• Clarifying the transfer of regulatory authority from the Nigerian Electricity Regulatory Commission (NERC) to state governments;
• Enhancing the implementation of the Electricity Consumer Assistance Fund;
• Strengthening penalties and institutional oversight.

The bill was passed for second reading and has been forwarded to the Senate Committee on Power for further legislative action, with a report expected within six weeks.