Nigeria is moving towards establishing a dedicated regulatory authority for renewable energy through the proposed Electricity Act (Amendment) Bill, 2025, sponsored by Hon. Afam Victor Ogene. The legislation seeks to create the National Authority for Renewable Energy (NARE), an independent institution that would consolidate regulatory responsibilities currently spread across the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF). The bill aims to centralise supervision of renewable energy generation, distribution, investment and consumption under a single coordinated framework.
NARE would oversee renewable energy technologies including solar, wind, hydro, geothermal, biomass, hydrogen, tidal and wave energy. The authority would be responsible for licensing and regulating renewable energy operators, approving projects, establishing operating codes, monitoring compliance and resolving disputes. It would also promote research into emerging technologies, establish technical standards and coordinate with the Nigerian Electricity Regulatory Commission on regulatory standards, grid connections, power purchase agreements and tariffs. A governing board would oversee the authority's policies and finances, with representatives from Nigeria's six geopolitical zones, relevant federal ministries, the Central Bank of Nigeria, the Renewable Energy Association of Nigeria and Women in Renewable Energy.
A key objective is expanding electricity access to underserved communities, particularly in rural areas. The bill proposes promoting mini-grid and off-grid renewable energy systems in remote communities, islands and locations with limited access to conventional networks. It also identifies bioenergy technology as an important component of rural electrification, reflecting broader aims to diversify energy sources. The legislation seeks to create a favourable investment environment by empowering NARE to facilitate financial, fiscal, regulatory and risk-sharing incentives for renewable energy producers. It also provides for collaboration between NARE and the Federal Ministry responsible for Finance to introduce tax incentives and relief measures encouraging renewable energy generation and project implementation.
Consumer protection forms an important part of the framework, with the bill proposing that renewable energy pricing and tariffs be fair and balanced for consumers, investors, licensees and other stakeholders. The legislation would allocate 40 per cent of the Rural Electrification Fund's annual resources to NARE for renewable energy development and associated activities, with additional funding from licensing fees, charges and National Assembly allocations. The bill also encourages gender mainstreaming and local content development, potentially creating opportunities for greater participation by women and indigenous businesses in the renewable energy market. Research, innovation and capacity building feature prominently, with NARE expected to support skills development and technological advancement.
For consumers and businesses in Nigeria, this framework could affect electricity availability and costs by expanding power access to underserved areas and creating investment opportunities in renewable energy, though success depends on clear institutional responsibilities and effective coordination between NARE and existing electricity authorities to avoid regulatory delays and overlapping mandates.