FG approves power sector roadmap, adopts National Integrated Electricity Policy

The Federal Government has formally ratified and adopted a roadmap for the Nigerian Electricity Supply Industry (NESI) by approving the National Integrated Electricity Policy (NIEP).

According to the Ministry of Power, the policy had been ready since December 2024 and was submitted to President Bola Ahmed Tinubu before being ratified on Monday at the weekly Federal Executive Council (FEC) meeting.

The NIEP is a comprehensive framework designed to transform Nigeria’s electricity sector in alignment with national development objectives and international best practices, as mandated by Section 3(3) of the revised Electricity Act 2023.

In a statement, Bolaji Tunji, Special Adviser for Strategic Communications and Media Relations, quoted Minister of Power Adebayo Adelabu as saying that policy implementation has already begun and will now gain momentum following the President’s approval, with impacts expected soon.

The Minister explained that the Electricity Act 2023 requires the Federal Government, through the Ministry of Power, to initiate the preparation and publication in the Federal Government’s gazette of an integrated National Electricity Policy and Strategic Implementation Plan within one year of the Act’s commencement.

The roadmap policy addresses critical challenges in Nigeria’s electricity sector through a comprehensive framework for sector transformation with clear guidelines for sustainable power generation, transmission, and distribution, as well as integration of renewable energy sources, its promotion, energy efficiency, and enhancement of sector governance,” Adelabu stated.

The Minister described the passage of the Electricity Act 2023 as a pivotal moment for the electricity sector, signalling transformative change that has laid the foundation for NESI and enabling exponential socio-economic growth.

“This National Integrated Electricity Policy and Strategic Implementation Plan (NIEP) is a comprehensive roadmap developed to guide all stakeholders – the Federal and State Governments, market participants, investors, and indeed all Nigerians, through this transition,” he said.

Adelabu emphasised that the policy’s preparation represents collective efforts involving the Ministry in collaboration with a wide cross-section of stakeholders across the public and private sectors at the national and state levels. These include civil society organisations, academic institutions, captains of industry, donor partners, development institutions, private sector participants, and consumer advocacy groups, all working to address complex challenges faced by NESI, from infrastructure deficits and inadequate capital to regulatory inefficiencies.

The NIEP is a very significant evolution from the National Electric Power Policy of 2001, which has been long overdue for replacement. The Policy outlines various initiatives to aid the growth and development of State Electricity Markets (SEMs). It fosters a decentralised but collaborative approach to energy management and resource planning. This policy is a living document that will evolve with the Industry’s needs and challenges. It underscores the importance of collaboration, innovation, and a steadfast commitment to consumer protection and engagement,” the Minister added.

The Policy is structured across eight chapters which comprehensively address: the historical perspective of the Nigerian Electricity Sector; key features of the Electricity Act 2023; Nigeria’s electricity policy objectives; electricity market design; value chain analysis and stakeholders’ roles and responsibilities; climate change and low carbon economy initiatives; gender equality, social inclusion, and local content development including research and development; and commercial, legal, and regulatory frameworks.