President Bola Tinubu has formally ratified and adopted a road map for the Nigerian Electricity Supply Industry by approving the National Integrated Electricity Policy, aimed at unlocking $122.2 billion in investments to overhaul Nigeria’s power sector.

At the Federal Executive Council meeting on Monday, Tinubu ratified the long-awaited National Integrated Electricity Policy, first submitted in December 2024, setting the stage for Nigeria to attract $122.2 billion in investments.

The policy outlines a sweeping reform agenda for the electricity sector, aligning with national development goals and global best practices, as required by Section 3(3) of the revised Electricity Act 2023.

The PUNCH had earlier reported in March that the policy seeks to secure a total investment of $122.2bn to diversify the country’s energy sources, reduce dependence on the national grid, and enhance the overall stability and sustainability of the nation’s energy infrastructure.

The amount, to be raised between 2024 and 2045, a 21-year period, is intended to ensure energy diversification from the current electricity sources of hydropower and gas-fired thermal plants.

It aims to diversify energy sources by incorporating hydrogen, solar photovoltaic technology, biomass, wind, gas projects combined with carbon capture, utilisation, and storage technologies, nuclear, concentrated solar power, and bioenergy.

It also noted that $192m would be incurred over five years (2024–2028) to boost transmission capacity nationwide.

According to a statement by the Special Adviser, Strategic Communications and Media Relations, Bolaji Tunji, quoting the Minister of Power, Chief Adebayo Adelabu, the implementation of the new electricity policy is already underway and will accelerate following the President’s approval.

He noted that the policy’s impact would soon be visible across the power sector.

He said the policy was expected to have published a comprehensive National Electricity Policy and Strategic Implementation Plan in the official gazette within one year of the Electricity Act 2023’s commencement.

The Minister said, “The Roadmap Policy addresses critical challenges in Nigeria’s electricity sector through a comprehensive framework for sector transformation, with clear guidelines for sustainable power generation, transmission, and distribution, as well as the integration and promotion of renewable energy sources, energy efficiency, and enhanced sector governance.”

He described the passage of the Electricity Act 2023 as a pivotal moment for the electricity sector, signalling transformative change and laying the foundation for NESI, thereby enabling exponential socio-economic growth.

“This National Integrated Electricity Policy and Strategic Implementation Plan is a comprehensive roadmap developed to guide all stakeholders, the Federal and State Governments, market participants, investors, and indeed all Nigerians, through this transition.”

Adelabu stated that the policy’s preparation represents the collective efforts of the Ministry in collaboration with a wide cross-section of stakeholders across the public and private sectors at national and state levels, civil society organisations, academic institutions, industry leaders, donor partners, development institutions, private sector participants, and consumer advocacy groups.

The goal is to address the complex challenges facing NESI, from infrastructure deficits and inadequate capital to regulatory inefficiencies.

“The NIEP marks a significant evolution from the National Electric Power Policy of 2001, which has long been due for replacement.

“The Policy outlines various initiatives to aid the growth and development of State Electricity Markets. It fosters a decentralised but collaborative approach to energy management and resource planning.

“This policy is a living document that will evolve with the industry’s needs and challenges. It underscores the importance of collaboration, innovation, and a steadfast commitment to consumer protection and engagement.”

The policy is structured across eight chapters, which comprehensively address the historical perspective of Nigeria’s electricity sector, key features of the Electricity Act 2023, national electricity policy objectives, market design, value chain analysis, stakeholder roles and responsibilities, climate change and low-carbon economy initiatives, gender equality and social inclusion, local content development (including research and development), and the commercial, legal, and regulatory frameworks.