The House of Representatives has taken a major step toward reshaping Nigeria’s power sector by passing for second reading a bill that seeks to create the National Authority for Renewable Energy (NARE).
The proposed legislation, the Electricity Act (Amendment) Bill, 2025, was sponsored by Afam Ogene, who represents Ogbaru Federal Constituency in Anambra State and chairs the House Committee on Renewable Energy.
Ogene explained that the bill would consolidate renewable energy responsibilities currently spread across agencies such as the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency, and the Rural Electrification Fund.
By centralising these functions under NARE, he argued, Nigeria could achieve better coordination, reduce duplication, and accelerate the growth of clean energy.
Under the plan, NARE would:Promote renewable projects such as mini-grids and off-grid systems for rural and underserved communities.
Support local manufacturing and research through incentives to attract investment and create jobs.Develop diverse energy sources including solar, wind, hydro, biomass, geothermal, and hydrogen.
Oversee licensing and tariffs, set standards, and resolve disputes in the renewable energy market.A key provision of the bill allocates 40 per cent of the Rural Electrification Fund to NARE, ensuring dedicated financing for renewable energy development.
Ogene emphasised that expanding the national grid alone cannot solve Nigeria’s electricity challenges. Instead, decentralised solutions like solar mini-grids could deliver power more efficiently to households, businesses, and public facilities in remote areas.
Following debate, lawmakers unanimously adopted the bill for further scrutiny by the relevant committee, which will review details such as the transfer of personnel, assets, and ongoing projects from existing institutions.
The initiative comes amid Nigeria’s broader efforts to tackle persistent electricity shortages and expand access through alternative energy sources.
While the proposal promises stronger institutional focus on renewables, lawmakers acknowledged that careful consideration will be needed to clarify funding arrangements and the relationship between NARE and existing agencies.
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