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ARTICLE · 05 JULY 2023

Commentaries On The Electricity Act, 2023

KPMG in Nigeria
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Nigeria's electricity sector has been plagued with challenges across the various subsectors, despite years of structural reforms and investments aimed at addressing these recurrent issues.

NigeriaEnergy and Natural Resources
Ayo Salami
Ayo Salami
Segun Sowande
Segun Sowande
Ayo Soyinka
Ayo Soyinka
Adewale Ajayi
Adewale Ajayi
Martins Arogie
Martins Arogie
Ikechukwu Odoh
Ikechukwu Odoh

Preface

Nigeria's electricity sector has been plagued with challenges across the various subsectors, despite years of structural reforms and investments aimed at addressing these recurrent issues. Power supply has been epileptic, with frequent national grid collapses and blackouts. The sector has also been plagued with liquidity, profitability challenges and high indebtedness.

On 8 June 2023, His Excellency, President Bola Ahmed Tinubu, GCFR, signed the Electricity Bill 2023 into law as Electricity Act, 2023 ("the Act"). The Act provides a comprehensive legal and institutional framework for the operation of a fully privatized, cost and service reflective tariff, contract and rule-based competitive electricity market in Nigeria, and repeals the following Acts:

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