INTRODUCTION TO THE ELECTRICITY ACT 2023
Transition and Continuity
The electricity supply chain in Nigeria was traditionally managed by the National Electric Power Authority (NEPA),
a vertically integrated national utility. This structure persisted until the Electric Power Sector Reform Act(ESPRA)
was introduced in 2005, ending NEPA’s monopoly. In this system, the generation, transmission, and distribution sectors
were centrally controlled and managed under the same public service framework.
The Electricity Act 2023 aims to address the shortcomings of the Electric Power Sector Reform Act 2005.
This new act comprises 22 parts, each focusing on different aspects of the electricity value chain.
Notable additions include:
- Licensing and incorporation of an Independent System Operator (ISO)
- Emphasis on renewable energy
- Recognition of State Electricity Commissions
- Inclusion of independent transmission providers
- Establishment of the National Hydroelectric Power Producing Areas Development Commission
This reformed structure reflects a more comprehensive and modern approach to managing Nigeria’s electricity sector.