A former Chairman of the Senate Committee on Power, Senator Gabriel Suswam, has issued a strong warning that the ongoing process to amend the Electricity Act 2023 is so comprehensive it risks destroying the foundational objectives of the landmark power sector reform.
Speaking at the 20th-anniversary celebration of the Nigerian Electricity Regulatory Commission in Abuja, Suswam expressed grave concerns over proposed changes circulating in the National Assembly. He argued that the amendments go beyond addressing specific issues and instead attempt to rewrite the core legislation.
“The intended amendments I have seen are rather very comprehensive. Some of them do not necessarily relate to the areas that have been identified as problematic,” Suswam stated. He cautioned that several provisions would “substantially change the intention of the Electricity Act,” which was designed to decentralise regulation and attract private investment.
The former Benue State Governor emphasised that the original law was crafted to give NERC autonomy and strengthen its oversight, urging the commission to protect its independence from political interference. “What is happening now at the National Assembly is a new legislation. It’s not an amendment. That is my worry. NERC must preside over what is happening in the sector and maintain its independence. That was the intent of the law we passed,” he said.
Suswam explained that while certain sections may require review, the approach should be surgical. “If there are specific areas with issues, you address them directly. But changing broad sections of the Act is like rewriting the constitution; it destroys the foundation,” he warned.
Beyond the legislative concerns, Suswam highlighted critical financial barriers crippling the sector. He described Nigeria’s monetary policy environment, with the Central Bank’s benchmark interest rate near 27 per cent, as catastrophic for power projects. “There’s no way our banking sector can finance the power industry with lending rates of over 30 per cent. Even if you’re doing Yahoo business, you can’t survive under such rates,” he remarked.
He called for the creation of sector-specific financing mechanisms, pointing to international examples. “Brazil, a developing country like ours, now has nearly 100 per cent electricity access because it created financial institutions dedicated to the power sector. We must do the same,” Suswam asserted.
The senator also advocated for structural changes, proposing the merger of power and gas portfolios under a single Ministry of Energy to better coordinate the energy value chain.
Concluding his address, Suswam challenged the Tinubu administration to move beyond rhetoric. “It’s not enough to deliver speeches at Chatham House or in New York about how Nigeria is open for business. We must be intentional and take actions that prove we’re ready,” he stated.
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