2024 marked the 11th year since the privatisation of the Nigerian electricity supply industry. It was also the first full year under the Electricity Act 2023, landmark legislation that has driven significant change, particularly the decentralisation of the electricity market.
A decentralised Nigerian electricity supply industry
States now have authority to regulate their own electricity markets and to let private investors run power plants within their borders. In 2024, Ekiti, Enugu, Imo, Ondo, Oyo and Lagos all moved to establish their own markets.
Decentralisation, combined with bilateral electricity trading, supports full cost recovery. As a result, the sector is becoming a more attractive place to invest.
What the 2024 Power Wrap-Up covers
Our report reviews the year’s key developments, including significant legal and regulatory changes, market trends and shifts in the energy mix.
Renewables are gaining ground. Nigeria’s energy mix increasingly includes hydro, solar and other sustainable options, and both public and private sectors are investing in them for a more balanced and reliable supply. Meanwhile, sustainable finance, such as green bonds and sustainability-linked loans, is helping fund renewable projects.
The report also includes:
- a month-by-month timeline of 2024;
- key power sector figures and a dossier of national grid collapses;
- analysis of the major legal and regulatory changes and their impact;
- an interview with Joel Abrahams of Konexa on its partnership with Nigerian Breweries PLC, on which we advised Konexa; and
- a case digest on the court’s decision about dispute resolution under the Electricity Act.
Notable moments from 2024
- In February, President Tinubu commissioned the 180MW-plus Geometric Power plant in Abia State, and the Federal Government handed operations of the $1.3 billion Zungeru hydro plant to Penstock Limited.
- In March, NERC issued the Eligible Customer Regulation under section 11 of the Electricity Act 2023.
- In April, NERC approved a 300% tariff increase for Band A urban consumers and issued an order establishing the Independent System Operator.
- In May, NERC approved an 8% reduction in Band A tariffs.
Looking ahead to 2025
Our projections cover expected regulatory updates, more state electricity markets and more public and private infrastructure investment. They also cover bilateral trading, waste-to-energy projects, further integration of renewables and strategies to improve energy efficiency. Together, these projections help clients and stakeholders plan for the risks and opportunities ahead.
For how the year actually unfolded, see our Power 2025 Wrap-Up and 2026 Outlook. Our insights on the NERC Delineation Order cover a key step in decentralisation.
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