By Gift ChapiOdekina, Abuja
The House of Representatives has passed the Electricity Act (Amendment) Bill, 2025, for second reading, setting the stage for further legislative consideration of a proposed National Authority for Renewable Energy (NARE).
The bill, sponsored by Afam Victor Ogene, member representing Ogbaru Federal Constituency, Anambra State, and Chairman of the House Committee on Renewable Energy, seeks to consolidate renewable energy regulatory functions currently spread across different government agencies under a dedicated authority.
Leading the debate, Ogene said the proposed legislation would address structural gaps in the power sector by transferring relevant renewable energy functions from the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF) to the proposed authority.
“This specialisation will improve coordination, reduce institutional overlaps and provide focused direction for the effective development of the renewable energy sector,” he said.
The lawmaker argued that Nigeria needed to look beyond expanding the national electricity grid to tackle persistent electricity access challenges, particularly in rural and underserved communities.
“We must embrace innovative, decentralised and renewable energy solutions that can reach communities and businesses more efficiently,” Ogene said.
Under the proposed legislation, NARE would regulate and supervise renewable energy development, promote mini-grid and off-grid electricity systems, and expand access to electricity in rural, unserved and underserved communities, including island communities.
The bill also seeks to encourage investment in the renewable energy sector through financial, fiscal and regulatory incentives designed to promote local manufacturing, research, innovation and capacity building.
It provides for the development of renewable energy sources, including solar, wind, hydro, geothermal, biomass and hydrogen, as part of efforts to diversify Nigeria’s energy mix.
Other proposed responsibilities of the authority include issuing licences, establishing standards, ensuring fair tariffs and resolving disputes in the renewable energy market to strengthen consumer protection and transparency.
The proposed authority would also collaborate with NERC and the Federal Ministry of Finance to facilitate effective grid integration and harmonise renewable energy policies.
A key provision proposes allocating 40 per cent of the annual funds of the Rural Electrification Fund to NARE to finance renewable energy development.
The proposed funding arrangement is intended to support the authority’s operations and expand the deployment of renewable energy solutions across the country.
Following deliberations, the House unanimously adopted the bill for second reading and referred it to the relevant committee for further legislative scrutiny.
The committee is expected to examine the bill’s provisions, including the proposed transfer of personnel, assets and ongoing projects from existing agencies to the new authority.
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