The Federal Government has approved a comprehensive roadmap for the transformation of Nigeria’s electricity sector with the formal adoption of the National Integrated Electricity Policy (NIEP), a key framework mandated under the Electricity Act 2023.
The policy, which was finalised in December 2024, was officially ratified on Monday during the weekly Federal Executive Council (FEC) meeting presided over by President Bola Ahmed Tinubu.
According to a statement by Bolaji Tunji, Special Adviser for Strategic Communications and Media Relations to the Minister of Power, the NIEP marks a significant shift in Nigeria’s approach to power sector reform, aiming to align the Nigerian Electricity Supply Industry (NESI) with national development goals and global best practices.
Minister of Power, Chief Adebayo Adelabu, noted that while implementation efforts had already begun, the President’s endorsement is expected to accelerate activities and deliver tangible impacts across the power value chain in the near term.
“The roadmap policy addresses longstanding challenges in Nigeria’s electricity sector, offering a detailed and holistic framework for sustainable generation, transmission and distribution,” Adelabu said. “It also promotes integration of renewable energy, improved energy efficiency, and stronger sector governance.”
He described the enactment of the Electricity Act 2023 as a landmark moment, laying the legislative foundation for a more dynamic and inclusive electricity market. In line with Section 3(3) of the Act, the Federal Ministry of Power is mandated to prepare and publish a national electricity policy and strategic implementation plan within a year of the Act’s commencement.
The NIEP, he added, is a “living document” designed to evolve alongside the sector’s needs, incorporating a decentralised but collaborative approach to energy planning and management, especially as state governments take on more roles in the emerging State Electricity Markets (SEMs).
Adelabu stressed that the policy was developed through extensive stakeholder engagement, including input from state governments, regulatory bodies, industry players, civil society groups, academic institutions, donor agencies, and consumer advocacy organisations. This inclusive process, he said, was crucial in crafting solutions to sector-wide issues such as infrastructure deficits, financing gaps, and regulatory inefficiencies.
The NIEP replaces the outdated National Electric Power Policy of 2001 and lays out key reform initiatives to drive the sector forward. These include measures to stimulate investment, promote local content, and ensure consumer protection and inclusion across gender and vulnerable groups.
Structured into eight chapters, the policy addresses:
Historical development of Nigeria’s electricity sector;
Highlights of the Electricity Act 2023;
National electricity policy objectives;
Design and structure of electricity markets;
Detailed analysis of the electricity value chain and stakeholders’ responsibilities;
Climate change adaptation and a transition to a low-carbon economy;
Gender equality, social inclusion, local content, and R&D;
Commercial, legal, and regulatory frameworks.
With the NIEP now officially adopted, the Federal Government is set to fast-track its implementation, with stakeholders across all tiers expected to align with the policy in transforming Nigeria’s energy landscape.
