The House of Representatives has advanced a bill proposing that 40 per cent of the annual Rural Electrification Fund be allocated to a new National Authority for Renewable Energy to expand electricity access and accelerate clean energy development across Nigeria.
The Electricity Act (Amendment) Bill, 2025, sponsored by Afam Ogene, representing Ogbaru Federal Constituency of Anambra State, was passed for second reading on Thursday after lawmakers unanimously supported it.
The bill seeks to establish the National Authority for Renewable Energy (NARE) as the principal agency responsible for regulating and promoting renewable energy development in the country.
Ogene, who chairs the House Committee on Renewable Energy, said the proposed authority would address overlapping responsibilities among existing institutions and provide a dedicated framework for the sector.
He explained that renewable energy functions currently spread across the Nigerian Electricity Regulatory Commission, Rural Electrification Agency and Rural Electrification Fund would be transferred to NARE.
“This specialisation will improve coordination, reduce institutional overlaps and provide focused direction for the effective development of the renewable energy sector,” he said.
Under the proposed legislation, NARE would regulate and supervise renewable energy activities, including the development of solar, wind, hydro, geothermal, biomass and hydrogen power.
The authority would also promote mini-grid and off-grid electricity systems in rural, unserved and underserved communities, including island settlements that remain beyond the reach of the national grid.
Ogene said the proposed agency would help attract investment through financial and regulatory incentives designed to encourage local manufacturing, research, innovation and skills development.
“We must embrace innovative, decentralised and renewable energy solutions that can reach communities and businesses more efficiently,” he said.
The bill also proposes empowering NARE to issue licences, establish industry standards, promote fair tariffs and provide mechanisms for resolving disputes in the renewable energy market.
It provides for collaboration between the proposed authority, NERC and the Federal Ministry of Finance on grid integration and policy coordination.
A major funding provision seeks to allocate 40 per cent of the annual resources available under the Rural Electrification Fund to NARE. Ogene said the arrangement would provide funding for renewable energy projects and help extend electricity to communities that remain unserved or poorly served by the national grid.
The proposed legislation also provides for the transfer of relevant personnel, assets and ongoing projects from existing institutions to the new authority.
Supporters of the bill argue that consolidating the functions under a specialised agency would improve coordination and help Nigeria diversify its energy sources while expanding electricity access.
Following its passage for second reading, the bill was referred to the relevant House committee for further legislative scrutiny.
Ogene has previously led the House Committee on Renewable Energy in engagements on Nigeria’s transition to cleaner energy, including participation at COP29 in Baku, Azerbaijan, in 2024 and COP30 in Brazil in 2025.
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