Power Wrap-Up and Outlook 2024

The year 2023 marked a decade, post-privatization of the power sector and witnessed significant legislative milestones which began with the enactment of the Constitution of the Federal Republic of Nigeria (Fifth Alteration) Act, No. 33, 202 imbued states with powers to legislate on electricity generation, distribution, and transmission within areas covered by the national grid.

On its trail was the enactment of the Electricity Act, 2023 (Electricity Act) which establishes a comprehensive framework for; the decentralisation of the sector, the promotion of renewable energy, the grant of power sector licenses, establishment of an Independent System Operator to unbundle the Transmission Company of Nigeria (TCN) amongst others. Several other regulations were issued by the apex regulator, the Nigerian Electricity Regulatory Commission (NERC) to address concerns relating to power supply and demand, remittances by market players, license issuance and consumer interests.

Accordingly, this report highlights significant milestones and key events within the power sector in 2023, and the impact of these events on the Nigeran Electricity Supply Industry, particularly, the progress in power sector investments and consequential shift in the ownership dynamics within specific distribution companies.

Looking ahead with a forward-thinking perspective into 2024, we envision substantial sectoral growth propelled by state-led legislative frameworks, increased private sector engagement, intensified competition, expanded investments, and a government that espouses a supportive stance on subsidies and the introduction of bilateral trading within the sector.

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