A Guide to the Nigerian Power Sector

A Guide to the Nigerian Power Sector

This guide provides a general overview of the Nigerian Power Sector and sets out the legal and regulatory framework applicable to the sector. It is also designed to provide information on the regulatory agencies and key institutions in the sector, broad practical guidance on the relevant legislation, fiscal provisions and applicable tax incentives, and some current industry issues prevailing as at date of publication.


The first utility company, the Nigerian Electricity Supply Company, was established in 1929. However, electricity generation in Nigeria had started over 30 years before, in 1896.

Despite the various efforts of the State-owned utility, (which operated as a monopoly) to manage the sector and provide electricity, it became clear by the late 1990s that the Nigerian electricity system was failing to meet Nigeria’s power needs. Hence, the National Electric Power Policy of 2001 kicked off the power sector reform in Nigeria, leading to several other reforms over the last decade. Since the advent of the democratic regime in Nigeria, there have been significant strides in the reform of the sector.

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