The Forum of Commissioners of Power and Energy in Nigeria (FOCPEN) has expressed serious concerns about the proposed Electricity Act (Amendment) Bill, 2025, which is under review by the Nigerian Senate. They warn that if this bill is passed, it could result in over N5 trillion in unpaid electricity subsidies being shifted to consumers.
This was contained in a statement signed on Wednesday by the chairman of FOCPEN and the Commissioner for Power and Renewable Energy in Cross River State, Prince Eka Williams, along with the Secretary of the Forum and Commissioner for Power, Renewable Energy and Transport in Benue State, Barr. Omale Omale.
According to the statement,”The amendment bill wants to create a bunch of federal institutions, agencies, and funds, and the costs to run these will be charged directly to electricity consumers. This will definitely make electricity prices go up for consumers. The extra financial load on electricity customers, who are already paying high prices for Band A service, is not fair, especially since States are trying to set prices that reflect the actual costs while improving service quality.”
Furthermore, the Forum highlighted that the bill mandates contributions from consumers and market players to fund the Power Consumer Assistance Fund (PCAF). This implies that consumers, even in States with cost-reflective tariffs, would shoulder the burden of subsidies via tariff surcharges, despite persistent problems and widespread non-payment and market losses.
“With this provision, the amendment bill would also place over N5 trillion in unpaid subsidies onto electricity consumers, worsening the challenges of affordability and equity in electricity access,” the Commissioners stated.
Bill to worsen financial strain on the federal government and states’ budgets
The Forum has further observed that the suggested legislation may intensify the financial strain on both the federal government and the states by attempting to reinstate the subsidy system.
According to The Forum at a time when President Bola Ahmed Tinubu’s administration seeks to eliminate unsustainable and excessive energy subsidies, the electricity amendment bill of 2025 seeks to establish a subsidy system within the power sector.
“It should be noted that electricity subsidies hit a shocking N1.94 trillion in 2024 alone! The total electricity subsidies, which are over N5 trillion, is seriously affecting the power sector and discouraging private sector investment.
“If this amendment bill is passed, it will only increase the financial strain on both the federal government and the states, jeopardizing the objective of a sustainable and self-sufficient power sector,” the Forum stated.
The Forum said that this is not the right time to change the Electricity Act of 2023 since the Act still in its early implementation phase.
The forum noted, ““several States have commenced the process to implement and set up state electricity markets.”
The Forum requested that the National Assembly halt any further discussions about the bill.
According to one analyst, N5 trillion is a huge amount for customers . It was stated that the Power Consumer Assistance Fund (PCAF) structure outlined in the Amendment Bill will be in charge of distributing subsidies to consumers. He indicated that this is a massive financial burden for Nigerian electricity customers.
Earlier this month, The Senate passed the Electricity Act (Amendment) Bill, 2025 during its second reading, as part of efforts to rescue Nigeria’s failing power sector from a possible collapse.
Led by Senator Enyinnaya Abaribe from Abia South, this amendment seeks to improve the 2023 Electricity Act by tackling current regulatory issues.
During the talks, many lawmakers proposed the idea of capital punishment for those found guilty of damaging power infrastructure.
“Electricity is a vital service. No one should be allowed to hold the country hostage under the pretense of a strike. We need to eliminate uncertainties and ensure that the law can be enforced.
He pointed out, “PCAF is included in the original Act, but the way the Fund was supposed to work was unclear. The Amendment Bill now requires that electricity customers pay into the Fund.
“With this mandatory payment, a key question arises: Is this an extra charge on top of the current tariff or something different? Clearly, it is an extra charge. Basically, PCAF will oversee the distribution of the N5 trillion subsidies to electricity users, which will definitely show up in your tariffs. N5 trillion is a huge amount to add to the tariffs that Nigerian consumers will have to bear, especially since the subsidy system hasn’t really helped them. If you’re giving me a subsidy, it means I should have gained some benefit from the products,” he stated.
