Abstract
Nigeria’s power sector presents a complex paradox of vast energy potential and chronic underperformance. With an estimated demand far exceeding supply, the nation has long relied on a centralized, inefficient grid and expensive, polluting backup generators. This paper analyzes Nigeria’s historical energy policy, from the failed privatization efforts under the Electric Power Sector Reform Act (EPSRA) of 2005 to the transformative provisions of the new Electricity Act 2023. We argue that the failures of past reforms were rooted in a persistent liquidity crisis, an outdated centralized grid, and systemic governance issues. The study examines how the new Electricity Act’s provisions for decentralization and state-level electricity markets offer a strategic opportunity to bypass these bottlenecks. By empowering states and promoting off-grid renewable energy solutions, the Act can attract crucial private investment, address the energy access gap, and foster a more inclusive and reliable power supply. Drawing on global case studies, this paper proposes actionable policy recommendations to leverage this new legal framework for a sustainable and equitable energy future for Nigeria.
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