By Oluwakemi Kindness
The House of Representatives has passed a bill seeking to establish a dedicated authority to expand renewable electricity access in rural communities and other areas underserved by Nigeria’s national grid.
The Electricity Act (Amendment) Bill, 2025, passed second reading on Thursday, proposes the creation of the National Authority for Renewable Energy (NARE) to regulate and promote renewable energy development across the country.
Sponsored by Afam Victor Ogene, who represents Ogbaru Federal Constituency, Anambra State, the bill seeks to consolidate renewable energy functions currently handled by the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF).
Ogene, who chairs the House Committee on Renewable Energy, said the proposed authority would reduce institutional overlaps, improve coordination and provide clearer direction for renewable energy development.
Under the bill, NARE would promote mini-grid and off-grid electricity projects in rural, unserved and underserved communities, including island settlements.
The authority would also provide incentives to attract investment, support local manufacturing, strengthen research and technical capacity, and create jobs in the renewable energy sector.
The proposed legislation identifies solar, wind, hydro, geothermal, biomass and hydrogen as energy sources to be developed to diversify Nigeria’s energy mix.
It would also empower NARE to oversee licensing, establish standards, promote fair tariffs and resolve disputes, while working with NERC and the Federal Ministry of Finance to harmonise policies and integrate renewable energy into the national grid.
A key provision proposes allocating 40 per cent of the Rural Electrification Fund’s annual resources to the new authority to finance renewable energy development.
Moving the bill, Ogene argued that expanding the national grid alone would not resolve Nigeria’s electricity challenges, particularly in communities without reliable grid access.
“We must embrace innovative, decentralised and renewable energy solutions that can reach communities and businesses more efficiently,” he said.
The bill also provides for the transfer of relevant personnel, assets and ongoing projects to the proposed authority. Ogene has led the House Committee on Renewable Energy in green energy engagements at COP29 in Baku in 2024 and COP30 in Brazil in 2025.
Following debate, the House unanimously passed the bill for second reading and referred it to the relevant committee for further legislative scrutiny.
