The House of Representatives has passed the Electricity Act (Amendment) Bill, 2025, for second reading, paving the way for the proposed establishment of the National Authority for Renewable Energy (NARE) to regulate and promote renewable energy development in Nigeria.
The bill, sponsored by Hon. Afam Victor Ogene, representing Ogbaru Federal Constituency and Chairman of the House Committee on Renewable Energy, seeks to address institutional gaps in the power sector by consolidating renewable energy functions under a dedicated authority.
Leading the debate on the bill, Ogene said the proposed authority would take over relevant renewable energy responsibilities currently handled by the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF).
He said the move would improve coordination, eliminate overlapping responsibilities and provide a clearer direction for the development of Nigeria’s renewable energy sector.
The bill also seeks to expand access to electricity in rural, unserved and underserved communities through mini-grid and off-grid systems.
It proposes financial, fiscal and regulatory incentives to encourage investment, local manufacturing, research and job creation in the renewable energy industry.
Under the proposed framework, NARE would oversee licensing, technical standards, fair tariffs and dispute resolution within the renewable energy market.
The authority would also promote the development of solar, wind, hydro, geothermal, biomass and hydrogen energy to diversify Nigeria’s energy sources and reduce dependence on conventional power generation.
In addition, the bill provides for collaboration among NARE, NERC and the Federal Ministry of Finance to ensure effective grid integration and policy coordination.
A key provision proposes allocating 40 per cent of the annual funds of the Rural Electrification Fund to the new authority to finance renewable energy development.
Ogene argued that expanding the national grid alone would not adequately address Nigeria’s electricity challenges, stressing the need for decentralised and renewable energy solutions.
“We must embrace innovative, decentralised and renewable energy solutions that can reach communities and businesses more efficiently,” he said.
The House unanimously adopted the bill for second reading and referred it to the relevant committee for further legislative scrutiny, including consideration of provisions for transferring personnel, assets and ongoing projects to the proposed authority.
Ogene has also led the House Committee on Renewable Energy in engagements on green energy development at the 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, in 2024, and COP30 in Brazil in 2025.
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