FG, PwC, others highlight priority actions to enhance power sector

The Federal Government, PwC Nigeria, and various stakeholders have underscored the importance of collaboration between regulators and operators to enhance the power supply in the nation.

This consensus was reached during discussions with stakeholders and industry leaders at PwC Nigeria’s 15th Annual Power and Utilities Roundtable.

The forum, titled “Nigeria’s multi-tier electricity market: Imperatives for successful evolution,” examined the essential actions needed to implement the country’s recent power reforms, following the Electricity Act of 2023.

During the Roundtable discussion, Adebayo Adelabu, the Minister of Power, stated: “Under the Renewed Hope agenda of President Bola Ahmed Tinubu, the Nigerian power sector has embarked on a new phase characterized by decentralization, liberalization, significant market and tariff reforms, and a complete transition from a single national market to a multi-tiered, multi-actor electricity ecosystem. The enactment of the Electricity Act of 2023 has transformed our power sector landscape. It enables sub-national governments to collaborate with private sector investors and developers to generate, transmit, and distribute electricity within their regions and territories. Currently, Nigeria has state electricity markets at various stages of development, fostering new opportunities for innovation and investment.”

In response, Pedro Omontuemhen, Partner and Leader for Energy, Utilities, and Resources at PwC Nigeria, remarked:
“With the ongoing implementation of the Electricity Act 2023 and recent policy developments, including states exercising their new powers, the sector has entered a phase where the success of the multi-tier market will be determined by how effectively reforms are applied in practice. The reforms recognise that decentralisation is vital to achieving Nigeria’s

electrification and sustainability goals, enabling localised solutions that support national objectives.

“Our engagement with industry leaders shows that clarity of stakeholder roles and collaborative action will be essential to navigate teething challenges. Additionally, supporting emerging state-level structures and exploring opportunities for regional coordination across neighbouring states will be key to strengthening oversight and overall sector performance.

Commenting, Bimbola Banjo, Partner, Energy and Resources at PwC Nigeria, said:”In a liberalised and increasingly sub-nationally regulated power market, the basis of competition across the value chain is being fundamentally rewritten. State-level licensing, sub-franchise models, and the separation of distribution and supply are reshaping market structure in Nigeria Electricity Supply Industry (NESI), challenging the idea of exclusive territories and shifting success factors from regulatory protection to operational excellence.

For DisCos, GenCos, and other market players alike, succeeding under this new architecture requires a clear understanding of evolving market dynamics, commercial agility, customer satisfaction, and purposeful execution supported by artificial intelligence (AI) and business model reinvention (BMR)”.