The Governor of Enugu State, Peter Mbah, took a significant step on Friday by signing the state electricity bill into law. This move is aimed at establishing a reliable and self-sustained power supply system for the state.
This move was made possible by the recently passed electricity bill, which empowers states to generate and distribute electricity.
During the bill signing ceremony at the government house, Mbah emphasized the significance of this step, highlighting its role in fostering economic growth and encouraging investments in the state’s electricity sector.
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He stressed that his administration’s ambition to boost Enugu’s economy from $4.4 billion to $30 billion is dependent on achieving a consistent and reliable power supply. This underscores the crucial role of stable electricity in supporting the state’s economic development and expansion goals.
“As you know, following the constitutional amendment and the Electricity Act of 2023, electricity is now on the concurrent list,” Mbah said in a statement after signing the bill.
“This will now enable us to play in all the value chain of the electricity industry.
“So, Enugu state has spared no time in making sure that we create our own electricity market. That is the crux of this law.
“We are now able to play in the generation, transmission, and distribution segments of the electricity market.
“We are also, through our regulatory commission, which this law has given us the power to create, going to be able to regulate the activities of these players – the generation, transmission, and distribution companies that will flow from it.
“So, this is a significant and very important law towards the achievement of the Enugu of our dreams because the development and growth of Enugu will all be predicated on the platter that this law has created.
“You cannot talk about industry or private sector investment if you don’t have electricity or power.
“Enugu, under our administration, is designed and indeed prepared to be the premier destination for investment and this law is part of the enablers.”
In June, President Bola Tinubu signed the electricity bill into law, granting states, companies, and individuals the authority to generate, transmit, and distribute electricity.
This new electricity law supersedes the Electricity and Power Sector Reform Act of 2005 and serves as a comprehensive consolidation of the laws governing the Nigerian Electricity Supply Industry (NESI). It signifies a significant reform in the energy sector, allowing greater participation from various entities in the generation, transmission, and distribution of electricity.
By this bill, Enugu joins other states like Lagos, Edo, and Kaduna that have already enacted electricity market laws and can commence regulation of their markets.
Under the provisions of the Act, states are empowered to issue licenses to private investors for the establishment and operation of mini-grids and power plants within their respective jurisdictions.
However, it is important to note that the Act explicitly forbids states from engaging in the distribution of electricity beyond their own borders, whether at the state or national level. This provision aims to maintain a structured and regulated system within the electricity sector, ensuring that distribution activities adhere to defined territorial boundaries.