FG Unveils New Power Policy to Fix Electricity Sector

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The Federal Government has also approved the National Integrated Electricity Policy (NIEP), a comprehensive framework designed to reform the power sector, improve governance, and attract investment throughout the electricity value chain.

The approval was granted during the Federal Executive Council (FEC) meeting, marking a key milestone for the Nigerian Electricity Supply Industry (NESI). This was disclosed by Mr. Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister of Power, in a statement issued in Abuja.

According to Tunji, the NIEP, first prepared in December 2024 and submitted to President Bola Tinubu, serves as a detailed national roadmap, designed to transform Nigeria’s struggling power sector, aligning with global best practices and the provisions of the Electricity Act, 2023.

Minister of Power, Mr. Adebayo Adelabu, announced that implementation of the National Integrated Electricity Policy (NIEP) is already underway and is expected to accelerate following the President’s ratification. He noted, “This roadmap addresses critical challenges in Nigeria’s electricity sector through a comprehensive framework that provides clear guidelines for sustainable power generation, transmission, and distribution.”. 

The NIEP also fulfills the requirement under Section 3(3) of the revised Electricity Act 2023, which requires the Federal Government, through the Ministry of Power, to develop and publish a comprehensive national policy and strategic implementation plan within a year of the law’s enactment.

Adelabu stressed that the new policy framework is not limited to infrastructure improvements but also incorporates renewable energy integration, energy efficiency initiatives, climate resilience strategies, and enhanced regulatory oversight, setting the stage for a modern and inclusive power sector. 

He described the NIEP as a detailed roadmap that will guide all stakeholders, federal and state governments, market participants, investors, and citizens, through this period of energy transition.

Significantly, the NIEP replaces the outdated National Electric Power Policy of 2001, which has been widely considered inadequate for addressing the current complexities of Nigeria’s evolving electricity landscape.

Adelabu said the policy was developed through extensive collaboration with stakeholders from both the public and private sectors, including civil society organizations, academia, industry leaders, donor agencies, development partners, and consumer advocacy groups.

He added that the NIEP specifically addresses deep-rooted structural issues such as infrastructure deficits, lack of capital investment, regulatory bottlenecks, and monopoly structures in distribution and generation. 

The policy also promotes the development of State Electricity Markets and supports a decentralized yet coordinated energy planning model, allowing sub-national actors to take on more active roles in electricity management. With the NIEP now in place, observers believe Nigeria is expected to experience increased investor confidence, more efficient power delivery, and improved service quality across the country. 

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