FG Approves New National Power Policy to Overhaul Electricity Sector
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FG Approves New National Power Policy to Overhaul Electricity Sector
The Federal Government has officially adopted the National Integrated Electricity Policy (NIEP), setting a transformative roadmap for the Nigerian Electricity Supply Industry (NESI).
The comprehensive policy, which was completed in December 2024 and submitted to President Bola Ahmed Tinubu, received formal ratification during Monday’s Federal Executive Council (FEC) meeting.
Mandated by Section 3(3) of the revised Electricity Act 2023, the policy provides a structured framework to align Nigeria’s electricity sector with national development goals and global best practices.
According to a statement by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations, quoting Minister of Power, Chief Adebayo Adelabu, implementation of the policy has already commenced and is set to accelerate with the President’s approval.
“The road map Policy addresses critical challenges in Nigeria’s electricity sector through a comprehensive framework for sector transformation with clear guidelines for sustainable power generation, transmission, distribution as well as integration of renewable energy sources, its promotion, energy efficiency and enhancement of sector governance,” Adelabu stated.
He emphasized that the passage of the Electricity Act 2023 was a defining moment for the industry, establishing a strong foundation for long-term growth and stability in NESI.
“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.”
Adelabu noted that the policy was developed through collaborative efforts involving stakeholders from both public and private sectors — including civil society organizations, academic institutions, development partners, private sector players and consumer advocacy groups — to address the sector’s persistent issues like infrastructure deficits, funding shortages and regulatory inefficiencies.
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“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 policy spans eight chapters covering the historical context of Nigeria’s electricity sector, core features of the 2023 Act, market structure, stakeholder roles, renewable energy integration, climate action, gender and social inclusion, local content, legal frameworks and research and development strategies.
With this new policy in place, the Federal Government signals a strong commitment to reforming Nigeria’s power sector for more sustainable and inclusive growth.
