A New Act For The Nigerian Energy Ecosystem

The Electricity Act 2023 was signed into law by President Bola Ahmed Tinubu on 8^th June 2023. The Act repeals the Electric Power Sector Reform Act 2005, and it seeks to encourage a comprehensive private sector involvement and investment across the Nigerian Electricity Supply Industry. The reform began with constitutional amendments which preceded the now passed Electricity Act, 2023.

KEY REFORMS OF THE ELECTRICITY ACT, 2023¹

• De-centralization of the electricity market: States, companies and individuals can now generate electricity under the new Act, as the generation, transmission, and distribution of electricity is no longer solely at the National level. This reform in particular encourages private sector involvement in the power industry thereby reducing the burden at the National level and allowing each state attend to its unique needs in relation to electricity as each state has its needs and peculiarities.