Nigeria Signs a Bill to Enable all 36 States to Generate, Transmit and Distribute Power

Nigeria States to Generate, Transmit and Distribute Power

President Buhari has signed an amended constitution that gives Nigerian states greater power to generate, transmit and distribute their own electricity.

This development is aimed at addressing the country’s lingering power challenges by promoting competition, driving efficiency, and ultimately improving access to electricity across Nigeria.

The amendment will enable state governments to partner with private companies to generate power, use the national grid for transmission, and sell electricity to customers within their territories.

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Nigeria’s Presidential Media Spokesperson Tolu Ogunlesi wrote on Twitter:

JUST IN: President @MBuhari has signed. Constitution Amendment Bills into Law.

By this signing. State Houses of Assembly & Judiciaries now have constitutionally-guaranteed financial independence, while Railways have moved from Exclusive Legislative List to the Concurrent List.

Another landmark change: By virtue of the Presidential Assent, Nigerian States can NOW generate, transmit and distribute electricity in areas covered by the national grid. Wasn’t allowed pre-amendment. This is genuine, realistic Restructuring – through the Constitution.

Nigeria’s Presidential Media Spokesperson Tolu Ogunlesi

What Does This Mean To Nigeria: States to Generate, Transmit and Distribute Power

This move is expected to boost electricity supply across the country, as state governments can now take responsibility for generating power to meet the needs of their citizens.

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This development marks a significant step towards resolving Nigeria’s longstanding electricity challenges, as it provides an opportunity for private sector investment in the power sector.

This will, in turn, create jobs, boost economic growth, and raise living standards across Nigeria.

The new policy will also foster innovation and encourage the adoption of renewable energy sources, which will help to address environmental concerns and promote sustainable development in the country.

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Furthermore, this policy is a great move to drive investment and innovation from the private sector. Let’s wait and see the outcome. Perhaps to check the results and progress of this policy after a few years.

Nigeria’s Energy Sector Challenges

Perhaps this move of Nigeria States to generate, transmit and distribute power is meant to curb the power challenges in this African country.

Nigeria is the most populous country in Africa and has a rapidly growing economy. However, the country’s energy sector faces numerous challenges that hinder its ability to meet the growing demand for electricity and fuel.

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Insufficient power generation: Nigeria’s power generation capacity is insufficient to meet the country’s demand for electricity. The country’s power generation capacity is only about 12,000 MW, while the demand for electricity is estimated to be around 30,000 MW.

Poor infrastructure: Nigeria’s energy infrastructure is outdated and inadequate, with many power plants and transmission lines in need of repair and modernization. This results in frequent power outages and disruptions, which impact businesses and households.

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Low access to electricity: Only about 45% of Nigerians have access to electricity, with many rural areas lacking access to reliable and affordable electricity. This limits economic development and makes it difficult for households to access essential services such as healthcare and education.

Dependence on fossil fuels: Nigeria’s energy sector is heavily dependent on fossil fuels, particularly oil and gas. This dependence makes the country vulnerable to fluctuations in global oil prices and limits the development of renewables and other sustainable energy sources.

Corruption and mismanagement: Corruption and mismanagement are significant challenges in Nigeria’s energy sector, with reports of embezzlement, bribery, and other forms of corruption. This hinders the development of the sector and undermines public trust in the government’s ability to manage the country’s energy resources.


This policy of Nigeria States to generate, transmit and distribute power will promote competition and private sector investment in the Nigerian power sector, increase electricity supply, and ultimately improve the quality of life for Nigerians.

It is a step in the right direction towards addressing Nigeria’s energy challenges and promoting economic growth and development.

Nigeria’s energy sector faces numerous challenges that require urgent attention and action. Addressing these challenges will require significant investment in infrastructure, modernization of the energy sector, and a shift towards sustainable and renewable energy sources.

It will also require a commitment to transparency, accountability, and good governance to ensure that the country’s energy resources are managed in the best interests of all Nigerians.



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Simon Tyrus Caine

Simon Tyrus Caine is a solar energy expert with more than 10 years experience in the solar sector. Simon has worked and lived in more than 5 countries. Simon has been involved in solar installations, solar project development, solar financing as well as business development in the solar sector. At SolarEyes International, Simon manages content development and day to day operations of the organisation.

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