The senate has passed the electricity bill 2022 that would allow states to generate and distribute power as well as solve the sector’s challenges.

The bill was passed on Wednesday, after the consideration of a report by the senate committee on power.

Sen. Gabriel Suswam, chairman of the committee, said the bill sought to provide an ideal legal and institutional framework to leverage the modest gains of the privatisation phase of the electric power sector in Nigeria.

Suswam said that it would minimise aggregate value chain losses in the sector when signed into law.

He stated further that there is no need for anyone or firm generating electricity below one megawatt to get a licence, adding that the new law would allow states or individuals with capacities to generate their power.

“Since electricity is on the concurrent list in the constitution, the bill has allowed state governments to license people who intend to operate mini-grids within the states,” he said.

According to the lawmaker, the piece of legislation will reinvigorate the institutional framework for the reform of the Nigerian Electricity Supply Industry (NESI) initiated and implemented by the federal government.

Ahmad Lawan, president of the senate, midway through consideration of the bill, sought to know the role and operational capacity of banks that had taken over Distribution Companies (DISCOs) indebted to them.

Responding, Suswam explained that the takeover of entities (DISCOs) by banks was duly carried out in collaboration with the Nigerian Electricity Regulatory Commission (NERC) and Bureau of Public Enterprise (BPE).

According to him, there is a transitional process put in place during the take-over of the Abuja Electricity Distribution Company (AEDC) by the United Bank for Africa (UBA) to ensure efficiency in service delivery.

After a clause-by-clause consideration of the committee’s report by the committee of the whole, The electricity Bill, 2022 was passed by the upper chamber.