Nigeria, UK, donor agencies unveil policy to boost power sector

Nigeria, with support from the United Kingdom’s (UK) Foreign, Commonwealth, and Development Office (FCDO), has formally unveiled the Nigeria Integrated Electricity Policy (NIEP) in a landmark step toward advancing the country’s power sector.

The NIEP was developed in collaboration with power sector professionals and donor partners, including the African Development Bank (AfDB), the World Bank, the United Nations Development Programme (UNDP), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Tony Blair Institute (TBI), and the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF).

The event, held in Abuja and organized by the Federal Ministry of Power with support from FCDO through UKNIAF, was attended by ministers, members of the Interministerial Power Sector Group, donor partners, and private sector executives, underscoring the extensive partnership and shared commitment to establishing a sustainable and inclusive electricity sector in Nigeria.

It served as a platform for the official presentation of the Nigeria Integrated Resource Plan (NIRP) 2024, the first of its kind to be prepared by the Federal Government of Nigeria for electricity sector planning purposes. The NIRP 2024 is a strategic blueprint designed to optimize the country’s power generation, transmission, and distribution infrastructure at the least cost and to provide guidance on the energy development requirements for sector stakeholders.

Since January 2022, the FCDO, through its flagship program in Nigeria—UKNIAF—has provided critical technical support to the Federal Ministry of Power and the Nigerian Electricity Regulatory Commission (NERC) in the development of the NIRP, ensuring a data-driven approach to addressing Nigeria’s power sector challenges. This reinforces its long-standing commitment to strengthening Nigeria’s power sector and fostering an enabling environment for private sector participation.

According to a statement issued by the organizers, the NIEP and NIRP 2024 represent critical milestones in Nigeria’s electricity reform and transformation journey and demonstrate the country’s commitment to evidence-based planning and sustainable energy development.

In addition to the presentation of the NIEP and NIRP 2024, the event, graced by the Minister of Power, Adebayo Adelabu, on Thursday in Abuja, featured a private sector-focused panel discussion on investment opportunities arising from both framework documents.

The Minister of Power, in his opening address, described the event as a turning point in Nigeria’s energy landscape. He stated that the integration of the NIRP with the National Integrated Electricity Policy lays the foundation for transformative investments in generation, transmission, and distribution. He emphasized that this milestone secures Nigeria’s energy future while creating an enabling legal and regulatory environment highly conducive to both local and international private sector participation.

Frank Edozie, Power Component Lead at UKNIAF, reiterated UKNIAF’s support for the initiative, noting that their involvement in developing the IRP and NIEP reflects a commitment to Nigeria’s power sector reform. He stressed that these strategic plans create a pathway for increased private sector participation by establishing a transparent, stable, and conducive environment for investments that will drive growth and innovation across the power value chain.

The NIEP is anchored in the reforms of the Electricity Act 2023 and establishes a transparent and competitive market environment that streamlines licensing and regulatory compliance. This framework aims to boost investor confidence and facilitate public-private partnerships.

The NIRP integrates evidence-based planning with actionable investment strategies, ensuring that supply-side resources and demand-side efficiency measures are optimally balanced for least-cost, sustainable electrification.

It also provides clear guidelines for phasing out inefficient self-generation practices and boosting renewable energy investments, particularly in solar, hydro, and gas technologies enhanced with carbon capture solutions.

These measures are expected to create vast opportunities for investors to support the least-cost grid expansion and modernization efforts.

The statement further noted that with these strategic measures in place, Nigeria is poised to attract unprecedented investment, drive innovation, and create jobs, ensuring that millions of Nigerians gain improved access to quality electricity.