INTRODUCTION

Following the enactment of the Electricity Act 2023 and its amendment in 2024, the Nigerian Electricity Supply Industry (“NESI”) has witnessed steady progress in implementation. Key developments include the transition to State-level regulation, the incorporation of the Nigerian Independent System Operator (“NISO”), and the establishment of additional successor companies. To support these reforms and drive further growth within the Sector, the Federal Ministry of Power unveiled the National Integrated Electricity Policy (“NIEP” or the “Policy”) in February 2025 after extensive stakeholder consultations. In this article, we examine key highlights of the NIEP.

The National Integrated Electricity Policy

Under Section 3(1) of the Electricity Act 2023, the Federal Government via the Ministry of Power, is mandated to develop and introduce the NIEP and the Strategic Implementation Plan (“SIP”) as policy frameworks to guide the growth and development of Nigeria’s Power Sector (the “Sector”). The NIEP and SIP are required to encompass key issues and elements, including the optimal utilization of Nigeria’s natural resources such as coal, natural gas, and renewable energy sources, promotion of captive power generation, public-private partnerships (“PPP”s) for rural electrification, and coordinated infrastructure development across the electricity value chain. The NIEP expressly provides that the SIP, which is to accompany the NIEP, will be based on the Integrated Resource Plan (“IRP”)- a plan that provides long-term, data-driven approach for national power system planning and investment prioritization. However, certain segments of the NIEP seem to suggest that the SIP is embodied within the NIEP as a single document.