Introduction
The year 2025 has seen concerted efforts to enhance performance and strengthen investor confidence across all segments of the Power Sector value chain. As highlighted in our 2025 Mid-Year Report on the Nigerian Power Sector (“2025 Mid-Year Report”), several key regulatory instruments were introduced to improve grid stability, governance, operational discipline and market accountability. These include the NESI Code of Corporate Governance, the Order on Mandatory Implementation of Free Governor Control and the mandatory integration of grid-connected generating units with SCADA.
In 2025, the Nigerian Electricity Regulatory Commission (“NERC”) continued to take decisive regulatory actions, particularly through sanctions aimed at curbing estimated billing by DisCos and accelerating the closure of the metering gap. Progress has also continued in the transition to State-level regulation. As of the date of this Report, a total of fourteen (14) States have been issued transition Orders by NERC. However, despite these regulatory advancements, the Power Sector remains constrained by persistent structural and operational deficiencies. The Sector reportedly recorded losses of about N200 billion in the first quarter of 2025 due to systemic inefficiencies. Furthermore, findings from the Industrial Energy Consumption Survey conducted by the Energy Commission of Nigeria in collaboration with the United Nations Industrial Development Organisation, indicate that over 40% of industries across selected States have disconnected from the national grid due to unreliable supply.
This 2025 End-of-Year Report on the Nigerian Power Sector references major developments recorded in the first half of the year as highlighted in our 2025 Mid-Year Report, examines key industry developments in the second half of 2025, and outlines our projections for the Sector in 2026.
