The Forum of Commissioners of Power and Energy in Nigeria has expressed strong concerns over the proposed Electricity Act (Amendment) Bill, 2025, currently being considered by the Senate.

The Forum warned that if passed, the bill could shift more than N5 trillion in unpaid electricity subsidies onto consumers.

This warning was issued in a statement jointly signed on Wednesday by FOCPEN Chairman and Cross River State Commissioner for Power and Renewable Energy, Prince Eka Williams, and the Forum’s Secretary and Benue State Commissioner for Power, Renewable Energy and Transport, Barr. Omale Omale.

The statement read in part, “The amendment bill proposes the creation of numerous federal institutions, agencies and Funds, whose operational and administrative costs are to be directly passed on to electricity consumers, thus resulting in higher electricity tariffs for consumers. The imposition of additional financial burden on electricity customers already struggling with high electricity tariffs for Band A service is unacceptable, especially when States are actively pursuing cost-reflective tariffs tied to improved quality of service.”

The Forum further noted that the bill mandates contributions from consumers and market participants to finance the Power Consumer Assistance Fund.

Under this provision, consumers — including those in states already operating cost-reflective tariffs — would be compelled to shoulder subsidy costs through tariff surcharges, despite ongoing issues of widespread non-payment and significant market losses.

“By this provision, the amendment bill would also transfer over N5 trillion in unpaid subsidies to electricity consumers, worsening affordability and equity in electricity access,” the Commissioners stated.

The Forum also warned that the bill could worsen the financial strain on both the federal and state governments by effectively reintroducing the electricity subsidy regime.

“At a time when the administration of President Bola Ahmed Tinubu is striving to end unsustainable and wasteful energy subsidies, the electricity amendment bill 2025 surprisingly seeks to entrench a subsidy regime in the power sector.

“It should be noted that electricity subsidies gulped N1.94 trillion in 2024 alone! The total accrued electricity subsidies of more than N5 trillion remain unpaid, crippling the power sector and making it unviable for private sector investments.

“The amendment bill, if passed, will further exacerbate the financial burden on the federal government and States, undermining efforts to achieve a sustainable and self-financing power sector,” the Forum stated.

The Forum emphasized that now is not the appropriate time to amend the Electricity Act 2023, as the legislation is still in the early stages of implementation.

The Forum noted that several states have already begun implementing their own electricity laws and are working to establish functional state-level electricity markets.

In light of this, the Forum urged the National Assembly to suspend further consideration of the proposed amendment to the Electricity Act.