The House of Representatives has passed the Electricity Act (Amendment) Bill, 2025, for second reading, proposing the establishment of the National Authority for Renewable Energy (NARE) to regulate and promote renewable energy development in Nigeria.
The bill, sponsored by Honourable Afam Victor Ogene, representing Ogbaru Federal Constituency and Chairman of the House Committee on Renewable Energy, seeks to centralise renewable energy regulation and improve electricity access nationwide.
Leading the debate on Thursday, Ogene said the legislation would address structural gaps in the power sector by transferring renewable energy functions from the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA) and Rural Electrification Fund (REF) to the proposed authority.
“This specialisation will improve coordination, reduce institutional overlaps and provide focused direction for the effective development of the renewable energy sector,” he said.
Ogene said NARE would promote mini-grid and off-grid electricity systems to expand access in rural, unserved and underserved communities, including island settlements that remain beyond the reach of conventional electricity infrastructure.
He added that the bill seeks to attract investment through financial, fiscal and regulatory incentives that would encourage local manufacturing, research, innovation and capacity building in the renewable energy industry.
The lawmaker said the proposed authority would promote solar, wind, hydro, geothermal, biomass and hydrogen energy to diversify Nigeria’s energy mix and support the development of alternative electricity sources.
The bill also proposes empowering NARE to oversee licensing, establish standards, promote fair tariffs and resolve disputes in the renewable energy market, while collaborating with NERC and the Federal Ministry of Finance on policy coordination and grid integration.
A key provision proposes allocating 40 per cent of the annual funds of the Rural Electrification Fund to NARE to finance renewable energy projects and expand electricity access across the country.
Ogene argued that Nigeria must adopt alternative approaches to tackle its electricity challenges, stressing the importance of decentralised power generation in reaching communities and businesses more efficiently.
“We must embrace innovative, decentralised and renewable energy solutions that can reach communities and businesses more efficiently,” he said.
The House unanimously passed the bill for second reading and referred it to the relevant committee for further legislative scrutiny, including provisions for transferring personnel, assets and ongoing projects.
Ogene also led the committee’s green energy engagements at COP29 in Baku, Azerbaijan, in 2024, and COP30 in Brazil in 2025.
