The Federal Government has approved the National Integrated Electricity Policy (NIEP), a sweeping framework billed as the most ambitious attempt yet to overhaul Nigeria’s chaotic and underperforming electricity sector.
The policy was ratified during the Federal Executive Council (FEC) meeting held on Monday and is designed to serve as a national roadmap that aligns with the new Electricity Act, 2023. The announcement was made in a statement released by Mr. Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Mr. Adebayo Adelabu.
The NIEP replaces the outdated National Electric Power Policy of 2001, with the federal government describing it as a blueprint for restructuring the Nigerian Electricity Supply Industry (NESI). The new policy seeks to improve service delivery, encourage investment, deepen regulatory reforms, and fast-track the adoption of renewables and decentralized energy models.
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Mr. Adelabu confirmed that the implementation of the policy has already begun. “This roadmap addresses critical challenges in Nigeria’s electricity sector through a comprehensive framework that provides clear guidelines for sustainable power generation, transmission, and distribution,” he said.
According to him, the NIEP is designed to address long-standing structural issues in the sector and is aligned with global best practices.
“This policy will guide stakeholders—federal and state governments, investors, developers, and consumers—as we navigate this energy transition,” Adelabu stated.
The policy also satisfies the mandate in Section 3(3) of the Electricity Act, 2023, which compels the Federal Government, through the Ministry of Power, to publish an integrated electricity policy and strategic implementation plan within one year of the Act’s passage.
Policy Features: Bold but Familiar
Among the notable features of the NIEP is its emphasis on encouraging decentralized planning and giving states the autonomy to develop and regulate their own electricity markets—powers already conferred by the Electricity Act, 2023. These provisions have opened the door for states to draft their own electricity laws and explore independent generation and distribution plans.
But beyond the decentralized structure, the NIEP adds other ambitious reforms aimed at directly addressing the root causes of Nigeria’s power sector dysfunction. These include:
- Breaking up monopoly structures in power generation and distribution to foster competition.
- Boosting capital investment, especially in power infrastructure and local manufacturing.
- Expanding renewable energy options to reduce overdependence on gas-powered generation.
- Improving energy efficiency, with the goal of reducing system losses and lowering costs for consumers.
- Climate resilience and sustainability, aligning Nigeria’s power growth with global climate goals.
The government says it expects the policy to attract private capital, enhance reliability, and restore investor confidence in a sector that has failed to live up to expectations despite years of reform.
Another Policy. Same Problems?
However, not everyone is convinced that the new policy will deliver meaningful results. Nigeria has overhauled its electricity laws and structures several times in the past, with little to show for it.
The most significant overhaul began under President Olusegun Obasanjo in the early 2000s, when the government unbundled the National Electric Power Authority (NEPA) and initiated the privatization of the sector. This led to the creation of successor companies under the Power Holding Company of Nigeria (PHCN) and eventually the transfer of distribution and generation assets to private operators in 2013.
However, the privatization drive has not translated into improved electricity supply. Nigerians continue to endure frequent blackouts, while the national grid collapses multiple times each year. Electricity access remains below 60 percent nationwide, and businesses spend billions of naira annually on diesel generators to compensate for unreliable power.
While many stakeholders have expressed optimism that the NIEP might finally steer the sector in a better direction, some have questioned whether the political will and institutional capacity required for execution truly exist.
Observers point out that decentralization alone won’t fix the sector if the underlying issues—such as weak regulation, insufficient transmission capacity, lack of metering, tariff shortfalls, and corrupt procurement practices—are not simultaneously addressed.
For instance, the Transmission Company of Nigeria (TCN), which remains under government control, continues to be a weak link in the power chain, frequently failing to evacuate generated power due to aged infrastructure and poor coordination. Meanwhile, regulatory bodies like the Nigerian Electricity Regulatory Commission (NERC) have often struggled to enforce compliance or penalize defaulters.
The government says it understands these concerns and insists that the NIEP was developed with this history in mind. Adelabu explained that the policy was formulated through extensive stakeholder engagement that included public and private sector players, civil society organizations, state governments, academia, and donor agencies.
“This is not just another policy. It’s a practical and inclusive document grounded in broad consensus,” he said.
The NIEP also incorporates mechanisms for coordination between federal and state actors and introduces reforms aimed at ensuring cost-reflective tariffs while protecting vulnerable consumers.