New law allowing states to generate, transmit, and distribute electricity
With the inadequacy of the national grid to meet the growing electricity needs of Nigerians, the citizens and some operators are agitated, and so, advocate for the decentralization of the grid to allow sub-national entities to generate and distribute electricity.
To achieve this, they asked that power generation and distribution should be removed from the exclusive list and moved to the concurrent list.
It became pertinent for a roadmap that would clearly define the goals of the power sector after seven years of privatisation without achieving the desired results. It has become unwise for us as a nation to continue to have a single grid. We need to separate it in such a way that any state or local government can go into power generation and distribution to people within its jurisdiction.
The advocacy became so strong for franchising, so that Nigerians will enjoy more supply. The entire process should be done in a way that investors would be able to get back their funds while their customers will get fair bills in line with global best practices.
At this point, Nigerian lawmakers unequivocally voted overwhelmingly in support of a constitutional amendment bill aimed at allowing state governments to generate and transmit their own electricity.
So, when in last week, President Muhammadu Buhari signed into law the constitutional amendment, allowing states in the country to generate, transmit, and distribute electricity in areas covered by the national grid, it was to the admiration of all.
The bill is one of the 19 bills the President assented to last week, 16 of which altered some provisions of the 1999 Constitution: Fifth Alteration Bills 2023.
It would be recalled that the National Assembly had in January transmitted 35 Constitution Amendment Bills to the president for assent, following the Senate resolution directing the former Clerk to the National Assembly, Mr. Olatunde Ojo, to forward all the proposed legislation that had met the requirement for assent as provided for in Section 9 (2) of the 1999 Constitution.
Another Constitution alteration bill assented to (Constitution Fifth Alteration Bill No. 45, Timeframe for the Submission of the Names of Ministerial or Commissioner Nominees) mandates the president-elect or the governor-elect as the case may be, to transmit names of his minister nominees/commissioner nominees to the National Assembly/State Assembly within two months (60 days) of his inauguration.
A statement issued by the Senior Special Assistant to The President on National Assembly Matters (Senate), Senator Babajide Omoworare, explained that the President also signed into law financial independence for State Houses of Assembly and States’ Judiciary: Fifth Alteration Bill 2023 No 9.
But more striking is the Fifth Alteration Bill No. 33, Devolution of Powers (National Grid System), which allows Nigeria’s 36 states to join the electricity generation business.
Another Constitutional alteration approves the renaming of the Nigeria Prison Service to the Nigeria Correctional Service: Fifth Alteration Bill No. 31, Devolution of Powers for Correctional Services.
Another one, among others, granted rights to the state governments to establish their own railway service: Fifth Alteration Bill No. 32, evolution of Powers, Railways. With this, the railway moves from the Exclusive Legislative List to the concurrent list.
Omoworare further hinted that the President also assented to three other bills which included: “The Nigerian Institute of Leather and Science Technology Act, The Nigerian Institute of International Relations Act, and The Federal Medical Centres (Amendment) Acts.”
The Deputy Speaker of the House of Representatives, Ahmed Idris Wase has commended President Buhari for his gesture in assenting to some of these legislations that altered some provisions of the 1999 Constitution.
Wase, who is also the Chairman, Special Ad-hoc Committee on the review of the 1999 Constitution, noted that the Constitution (Fifth Alteration) bill, 2023 is fragmented into 16 bills.
The Deputy Speaker explained that four of the bills centred on devolution of powers, promotion of true Federalism and also strengthening of State Houses of Assembly and Judiciary.
Wase appreciated members of the 9th National Assembly (as we do too), for working tirelessly to ensure the passage of “these legacy legislations.”
Another good the bills are offering is that they will help to address the call for true fiscal federalism, as some of these things removed from the exclusive legislative list to the concurrent list will devolve more power to states.
“Essentially four of the bills deal with devolution of powers/promoting true Federalism. And also strengthening of State Houses of Assembly and Judiciary,” Wase said.
The developments are expected to excite business leaders in Nigeria states most especially Lagos, Nigeria’s commercial hub, who plays hosts to over 2,000 industries and about 65 per cent of the country’s commercial activities.
By the time sub-governments and investors engage in power generation and distribution, businesses, especially manufacturing sector are expected to bounce back. Some of the companies that have left Nigeria for lack of adequate power supply will begin to come back.
Generally speaking, this portends a conducive environment for Nigerian economy to strive. So, signing of the bill to law is the right step in the right direction.
