A Review of the Power Sector in Nigeria

The Nigerian government has taken steps to try and address the challenges faces across the power generation value chain. They include the introduction of a power regulatory body – the Nigerian Electricity Regulatory Commission (NERC) in 2005 - the unbundling of power assets and the implementation of the National Integrated Power Project (NIPP) formed to address issues of insufficient electricity generation. In 2018, Meter Assets Provider (MAP) was introduced by NERC to encourage the development of independent and competitive meter services and eliminate estimated billing practices. Finally, the Electricity Theft and Prohibition Bill was submitted to the Senate committee in an effort to tackle the 35% energy losses due to theft and sabotage. This report reviews the performance of the power sector since 2018 and maintains that power must be realistically priced in order to attract the investments required to provide electricity to parts of the nation without power. With about 60% of the country’s population without access to electricity supply, the enforcement of a cost-reflective tariff system could offer an opportunity to reach more customers and provide a more sustainable solution to the distribution problems currently affecting the industry. In addition, policies that promote the adoption of alternative sources of power must be properly implemented so as to meet the rising electricity demand.

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