Afriwise Blog

The Nigerian Electricity Act 2023: Illuminating the path towards Power Sector transformation in Nigeria

Written by Udo Udoma & Belo-Osagie | 31/08/2023

Prior to 2005, the Nigerian power sector was largely government-owned. With the enactment of the Electric Power Sector Reform Act in 2005 (“EPSRA”), this monopoly was unbundled and the sector was reformed with the privatisation of the generation and distribution segments of the value chain, the establishment of an independent regulator, and the launch of a framework for a competitive electricity market, amongst other reforms.

 

With the enactment of the Electricity Act 2023 (the "Act"), the Nigerian Government has set 
out on an ambitious path to further revamp Nigeria's electric power landscape and improve 
the legal framework, all in a bid to advance the development of the sector. The significance 
and timing of this legislation are not lost on industry enthusiasts, many of whom are keen on 
further comprehensive reforms in the sector. The Act aims to create an environment that 
supports sustainable growth and investment in the power industry by focusing on 
accelerated private sector involvement, improving regulatory control, and enhancing 
consumer protection. The Act seeks to do so by promoting public-private partnerships 
across the electricity market value chain, expanding the scope of the regulatory powers of 
the Nigerian Electricity Regulatory Commission (“NERC”), incentivising the proponents of 
renewable energy projects and initiatives, and encouraging State participation in areas of the 
Nigerian Electricity Supply Industry (“NESI”) which were previously within the purview of the 
Federal Government. 


This legislation is a welcome addition to the recent constitutional amendment, which confers 
on States the constitutional powers to make laws permitting each State to generate, 
distribute and transmit electricity in areas within each State's boundaries, including areas 
previously covered only by the national grid.1 Additionally, some of the key themes of the 
Act include emphasising the sector’s need for a more transparent, accountable, and 
competitive electricity market, which aims to attract investments, foster innovation, and 
ultimately provide Nigerians with reliable and affordable energy. 


This article aims to examine the key provisions of the Act, highlighting its potential impact on 
various stakeholders and exploring how it aligns with Nigeria's broader power goals. 

 

Read the publication here. 

 

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Read the original publication at Udo Udoma & Belo-Osagie.