The Federal Executive Council on Monday, 5 May 2025, approved the National Integrated Electricity Policy (NIEP), which replaces the National Electric Power Policy of 2001. The NIEP now stands as Nigeria’s comprehensive blueprint for addressing the inefficiencies in the country’s electricity sector and promoting sustainable energy development. The NIEP was developed pursuant to Section 3(1) of the Electricity Act 2023 (EA) which mandated the Federal Government, through the Federal Ministry of Power to commence the process for the preparation and publication of the NIEP and Strategic Implementation Plan (SIP) within one (1) year of the commencement of the EA.

3 June 25

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The NIEP sets out the Federal Government’s electricity objectives and initiatives necessary for successful implementation, including a commitment to achieve universal electricity access of approximately 6.3GW by 2030 and a 60% renewable energy mix in power generation by 2060. It also outlines the Nigerian electricity market design introduced under the EA, comprising the National Wholesale Electricity Market (NWEM), the State Electricity Markets (SEMs) and Off-grid Electricity Markets for rural and underserved communities.

Other notable provisions of the NIEP include the introduction of local content parameters, gender equality, poverty eradication, social inclusion, and human resource capability development. There is a linkage with other key policies of the Federal Government like the Nigeria Energy Transition Plan, the National Climate Change Policy for Nigeria, and the National Integrated Resources Plan launched in January 2025.

For stakeholders, the approval of the NIEP signals the following:

  1. A structured regulatory environment which reduces investor risk and enhances clarity in Nigeria’s evolving multi-tier electricity market.
  2. A renewed emphasis on private sector collaboration to mobilise the estimated USD 122.2 billion in capital required across generation, transmission, and distribution infrastructure value chain of the sector.
  3. A pathway to increased innovation, competition, and investment in renewable energy and inclusive access models, particularly in off-grid and sub-national markets.

We expect that the ambitious NIEP will be followed by a robust SIP as envisaged under the EA.

Should you have any questions on this legal alert, please do not hesitate to contact Oghogho Makinde or Cephas Caleb.

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Contributor 
Aaron Alasa – Associate