By Abdullahi Lukman
The House of Representatives is reviewing a bill that seeks to strip key regulatory bodies of their powers over renewable energy and establish a new agency—the National Authority for Renewable Energy (NARE)—to oversee the sector in Nigeria.
Sponsored by Victor Ogene, who represents Ogbaru Federal Constituency in Anambra State, the bill recently passed its first reading and proposes amendments to several sections of the Electricity Act, 2023, including Sections 1, 34, 65, 67, 68, 72, and 113.
If passed, the bill would remove the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency, and the Rural Electrification Fund from their current roles in regulating and promoting renewable energy.
NARE would instead be responsible for policy creation, regulation, compliance enforcement, and development oversight of the renewable energy sector.
According to the proposed Section 164, NARE would be a corporate body with full legal authority to operate independently, while collaborating with NERC and other government agencies where necessary.
The functions of NARE would include formulating frameworks for renewable energy use, regulating industry structures, promoting market efficiency, ensuring resource optimization, and enforcing sector compliance.
The authority would also be empowered to apply sanctions for violations within the renewable energy space.
The bill proposes a Governing Board for NARE, to be chaired by a presidential appointee, with representation from all six geopolitical zones, key ministries, the Central Bank of Nigeria, and relevant industry associations including Women in Renewable Energy.
Funding for the new authority would come from 40% of the Rural Electrification Fund, as well as income from licenses, fees, and National Assembly appropriations.
The bill is expected to be listed for debate at plenary in the coming two weeks.
