Akwa Ibom State electricity law- Legislative drafter’s overview

By Emmanuel Nicholas

The Law establishes a comprehensive legal and institutional framework for the generation, transmission, distribution and sale of electricity within Akwa Ibom State.

Its principal aim is to enable a competitive, climate‑smart, gender‑sensitive and socially inclusive electricity market that expands access (especially in unserved and underserved areas), promotes renewable energy and local content, protects infrastructure, curbs theft, and attracts intra‑ and inter‑state trade and investment.

The purpose of the law
1. Establishes a legal and institutional framework for electricity generation, transmission, distribution and sales within Akwa Ibom State.

2. Creates an Akwa Ibom State Electricity Regulatory Commission (the Commission) and an Akwa Ibom State Electrification Agency (the Agency) (Section references: Part I, Part II, Section 47 referenced).

3. Objectives:

Enable a competitive, climate-smart, gender‑sensitive, socially inclusive electricity market; promote renewable energy, local content, energy access in unserved/underserved areas; protect infrastructure and curb theft; foster intra-/inter-state trade and investment.

(4) Policy, planning and oversight (Sections 2-4,3)
(a) The Ministry/Department responsible for electricity (via the Commissioner) must prepare, publish and periodically review the State Electricity Policy and the State Integrated Resource Plan (IRP). Reviews at least every five years. The IRP must incorporate the Agency’s electrification strategy (Sections 2–4).

(b) Policy must address transparency, energy efficiency, renewable deployment, investment facilitation, universal access with gender/equity considerations, commercialization of State assets, and public consultation.

(C) Commissioner’s powers include issuing policy directions to the Commission (not inconsistent with the Law), advising government, promoting local content and gender-inclusive programs, supporting the IRP until system operator licensing, and promoting R&D.

Akwa Ibom State Electricity Regulatory Commission (Part II, Sections 5-19)

1, Establishment and legal personality: Commission is a corporate body responsible for implementing the Law (Section 5).
2, Composition and appointment: five full-time Commissioners (at least one female) nominated by the Governor and confirmed by the House of Assembly; Chairperson/CEO and Vice-Chair designated by the Governor (Section 6).

(3) Qualification, tenure and restrictions: Chairperson requires ≥10 years senior experience in relevant fields; Commissioners serve a single three‑year term, renewable once; post‑term one‑year prohibition on holding market interests; grounds for vacation and disqualification set out (Section 6).

(4) Governance: quorum of three, including Chair or Vice; decisions by majority; provisions for hearings, reserving questions of law to the court (Section 7).
(5) Staffing and Secretary: Commission appoints staff; Secretary must be a legal practitioner with ≥10 years post-call and is not a Commissioner (Section 8).

(6) Ethics and service conditions: Commission to prepare Code of Ethics; Governor to approve conditions of service, including remuneration, pension/gratuity provisions (Sections 9–11).

(7)Objectives and functions: ensure a reliable, efficient State market; hold licensees accountable; ensure environmental compliance with national commitments (Section 12–13).

(8) Powers: licensing, codes and standards, tariff framework, market rules, monitoring and enforcement, dispute resolution, investigations (Sections 13–14).

(9) Inspectors: Commission may appoint inspectors to enforce technical/electrical standards, inspect installations, certify meters/materials, investigate accidents, and undertake testing and R&D support (Section 16).

(10) Finance and Reporting: Commission funded by take‑off grant from Governor, fees/charges, appropriations, donations; annual budget submission, audited accounts and annual activity report to Governor (Sections 17–19).

Akwa Ibom State Electricity Market & Licensing (Part III, Sections 20-34)

1. Market definition: establishes the State Electricity Market. Except for entities licensed by NERC (or its successor) to serve outside the State, no person may generate/transmit/distribute in the State unless: incorporated under CAMA for that service; registered/addressed in the State; and licensed by the Commission (penalty: 6 months imprisonment + N1,000,000 per day) (Section 20).

2, Licence categories: generation, transmission, system operation, distribution, sales/supply, trading, integrated utility, and other categories by the Commission. Captive generation >320 kW or >7,680 kWh/day requires a permit (Section 21)

3, Ownership and market power safeguards: restrictions on cross‑shareholding to prevent market power; where vertical integration exists, the Commission must require accounting separation and ongoing public reporting (Section 21).

4, Licence areas and obligations: licences limited to the State or named LGAs; distribution/supply licences include obligations for universal access and coordination with the Agency; default licence term 20 years, renewable for 10 years (Section 21).

5, Licensing process and criteria: Commission solely responsible for licensing; may make regulations governing all licensing matters; applicants must demonstrate technical, managerial and financial capacity and personnel competence (Sections 22–23).

6, Specific licences: generation, transmission, distribution, supply/sales, trading, integrated utility (cap 5 MW, no transmission/system operator rights), system operator (only one permitted; mutual not‑for‑profit ownership by market participants; will become custodian of the IRP and carry out scheduling, dispatch, ancillary services, settlements, coordination, etc.) (Sections 24–30).

7, Codes and standards: Commission to develop mandatory technical codes, scheduling/dispatch rules (in consultation with system operator if licensed), DSM/energy efficiency rules, shared-facility rules, published and binding (Section 31).

8, Technology and fuel neutrality: licences are technology- and fuel‑neutral but must conform to emission/environmental limits under state/national law (Section 32).

9, Transparency and consumer data: licensees must operate full-service internet portals with licence terms, contracting terms, customer‑care standards and required real‑time performance data; portals must support customer payments (Section 33).

10, Enforcement and sanctions: Commission may issue corrective orders, impose daily fines (min N1,000,000/day), revoke licences and appoint Administrators to ensure continuity; processes require notice and opportunity to respond (Section 34).

Renewable Energy and Energy Efficiency (Part IV, Section 35)

1, Commission required to support renewable energy deployment via simplified licensing and fee regimes for RESPs, grid‑connectivity regulations, technical standards and certification for renewable personnel, embedded generation and mini‑grid regulations, and local content measures for manufacture/assembly and skills development.

2. Promotes minigrid rules for metering/billing and integration of renewables into networks; encourages public education and R&D.

Enforcement, inspectors, safety and technical compliance

1, Robust inspectorate powers to enforce technical standards, certify meters and materials, investigate accidents, test and certify installations in hazardous locations, and publish reports (Section 16).

2, Criminal and administrative sanctions for unlicensed activity and for licence breaches (Section 20, 34).

Reporting, Transparency and Public Participation

1, IRP and Electricity Policy require broad public consultation and reporting; Commission to publish audited accounts, annual reports, and make monitoring reports publicly available (Sections 2–4, 18–19, 21(5)).

Key Cross-References and Institutional Interactions

1. Ministry/Commissioner provides policy direction; Commission implements and licenses.

2. System Operator (single) may be licensed and assumes custodianship of IRP when licensed.

3, Agency (Section 47 referenced) responsible for the State electrification strategy and plan (to be incorporated into IRP).

4, Explicit limitation recognizing entities licensed by the Nigerian Electricity Regulatory Commission (NERC) or successor to serve outside the State (Section 20), but a broad State licensing ambit otherwise.

Immediate drafting/policy issues to check (Suggested)

1, Constitutional and concurrent powers: clarify interactions and supremacy/compatibility with federal electricity laws and NERC jurisdiction to avoid constitutional conflict (Section 20 acknowledges NERC‑licensed exporters, but broader market restrictions may raise federal competence questions).

2, Transitional arrangements: clarify transitional regime for existing assets, licenses and personnel (e.g., treatment of companies already operating in the State, timelines for compliance and grandfathering).
– Coordination with national grid operators: specify cooperation protocols where interconnections or interstate trade occur, and dispute-resolution mechanisms with federal bodies.

3, Clarity on Agency: Section 47 referenced but text not included — ensure Agency’s powers, governance, funding, and relationship to Commission and licensees are defined.

4, Penalties and fines: ensure proportionality and consistency with civil/criminal standards and appeal procedures.

5, Data privacy & cybersecurity: licensing requires real‑time data portals — include protections for customer data and cybersecurity obligations.

6, Procurement/competition: set clearer rules on public procurement, state asset commercialization, and anti‑competitive behaviors.

Lastly, the law sets up a comprehensive State-level electricity market framework: policy, planning (IRP), regulator (Commission), market structure and licences, inspectorate, enforcement, renewable energy promotion, and obligations for transparency and consumer protection.

I recommended the next bill steps: finalize sections on the Agency (Section 47), transitional provisions, dispute-resolution and appeals, clarify federal–state interface, and add data protection/cybersecurity and detailed institutional coordination provisions.

Nicholas, a holder of the Bachelor of Laws (LL.B.) and a Master of Legislative Drafting (MLD), with a specialization in legal drafting. He currently serves as Special Assistant to the Governor of Akwa Ibom State on New Media.