The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, has warned that the proposed law to establish a National Authority for Renewable Energy (NARE) could create regulatory uncertainty, discourage private investment and undermine Nigeria’s emerging renewable energy market. Mr Aliyu made the argument in a right-of-reply document made available to PREMIUM TIMES following the newspaper’s report on the House of Representatives’ consideration of the Electricity Act (Amendment) Bill, 2025.
In the document titled “Do not fragment a market that is beginning to work: Why the proposed Electricity Act amendment risks setting back Nigeria’s renewable energy revolution,” Mr Aliyu questioned whether creating another regulatory institution would improve electricity access or complicate the operations of existing institutions. He acknowledged the National Assembly’s responsibility to review legislation and the need to accelerate renewable energy development but argued that the proposed institutional arrangement required fundamental reconsideration.
“The question is whether creating another regulatory institution will produce one additional megawatt of electricity, one additional connection, one additional manufacturing plant or one additional naira of private investment,” he said. The House on 15 October advanced the bill, sponsored by Afam Ogene, the chairman of the House Committee on Renewable Energy, for second reading. The proposed legislation seeks to establish NARE as the principal institution responsible for regulating and promoting renewable energy development in Nigeria.
Under the proposal, renewable energy responsibilities currently exercised by the Nigerian Electricity Regulatory Commission (NERC), REA and the Rural Electrification Fund (REF) would be transferred to the new authority. The bill also proposes allocating 40 per cent of the annual Rural Electrification Fund to NARE. Mr Ogene had argued during the debate that a dedicated authority would address overlapping responsibilities, improve coordination and provide a focused regulatory framework for the sector.