Introduction
The enactment of the Electricity Act 2023 (the "EA" or the "Act") now effectively incorporates Nigeria’s federal system in the Nigerian Electricity Supply Industry ("NESI") in that, State Governments in Nigeria1 now have the powers, subject to the EA2, to establish and operate their own State electricity market.
The Act's primary objective is to establish a comprehensive framework that fosters private sector investments and provides a pathway towards consistent and reliable universal electricity access across the nation3. To guide this ambitious endeavour, the Federal Government through the Federal Ministry of Power, in December 2024, developed the National Integrated Electricity Policy (the "Electricity Policy"), and same was approved by the Federal Executive Council on the 6th of May 2025. The Electricity Policy is a comprehensive roadmap for all stakeholders, and it is intricately linked with the Nigeria Integrated Resource Plan (the "Integrated Resource Plan"), a crucial planning tool aimed at achieving energy objectives (set out in the Electricity Policy) in a strategic and cost-effective manner.
For investors, understanding the regulatory landscape, policy objectives, and long-term energy infrastructure plans is essential to identifying bankable projects and maximizing returns. This article explores the Act, the policy targets of the Electricity Policy, and how the Integrated Resource Plan interrogates available energy resources, forecasts demand and identifies investable opportunities which will lead up to the achievement of the policy targets set out in the Electricity Policy.
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1State Governments in Nigeria, 36 of them, are sub-national governments within Nigeria’s federal system. State Governments may be referred to as “State(s)” in this article.
2Section 230 of the Act
3Section 1 of the Act