An Analysis of the Nigerian Power Sector: The Journey Thus Far and the Way Forward

TY - JOUR

T1 - An Analysis of the Nigerian Power Sector

T2 - The Journey Thus Far and the Way Forward

AU - Adejo, Naomi April

PY - 2025/6/30

Y1 - 2025/6/30

N2 - This article presents an analysis of the Electricity Act (EA) 2023 in Nigeria, a pivotal legislation that repeals the Electric Power Sector Reform Act (EPSRA) 2005 and establishes a new framework for the Nigerian Electricity Supply Industry (NESI). The study delves into the historical context of Nigeria's power sector, the challenges it has faced, and the reforms undertaken to address these challenges. The EA 2023 is examined in detail, highlighting its key innovations such as the decentralisation and de-monopolisation of the power sector, the establishment of State electricity markets, and the incorporation of renewable energy sources. The research underscores the importance of these reforms in addressing the energy trilemma—balancing energy security, equity, and environmental sustainability. It also evaluates the potential risks and offers recommendations for effective implementation. This paper aims to provide a better understanding of the EA's impact on Nigeria's power sector and its alignment with global climate change objectives. The conclusion of the research emphasises that while the EA 2023 is a progressive step towards addressing Nigeria's energy challenges, its success is contingent upon effective implementation, continuous policy adaptation, and strong public-private partnerships. The study concludes that the EA has the potential to significantly transform Nigeria's energy landscape, making it more efficient, sustainable, and aligned with global climate change goals, provided that the associated risks are effectively managed and mitigated.

AB - This article presents an analysis of the Electricity Act (EA) 2023 in Nigeria, a pivotal legislation that repeals the Electric Power Sector Reform Act (EPSRA) 2005 and establishes a new framework for the Nigerian Electricity Supply Industry (NESI). The study delves into the historical context of Nigeria's power sector, the challenges it has faced, and the reforms undertaken to address these challenges. The EA 2023 is examined in detail, highlighting its key innovations such as the decentralisation and de-monopolisation of the power sector, the establishment of State electricity markets, and the incorporation of renewable energy sources. The research underscores the importance of these reforms in addressing the energy trilemma—balancing energy security, equity, and environmental sustainability. It also evaluates the potential risks and offers recommendations for effective implementation. This paper aims to provide a better understanding of the EA's impact on Nigeria's power sector and its alignment with global climate change objectives. The conclusion of the research emphasises that while the EA 2023 is a progressive step towards addressing Nigeria's energy challenges, its success is contingent upon effective implementation, continuous policy adaptation, and strong public-private partnerships. The study concludes that the EA has the potential to significantly transform Nigeria's energy landscape, making it more efficient, sustainable, and aligned with global climate change goals, provided that the associated risks are effectively managed and mitigated.

KW - Electricity

KW - Nigeria

KW - Power system

KW - Nigerian Electricity Supply Industry

KW - Electricity Act

U2 - 10.20933/100001405

DO - 10.20933/100001405

M3 - Article

SN - 1369-8931

VL - 22

JO - CEPMLP Annual Review

JF - CEPMLP Annual Review

ER -