Nigeria’s FEC Approves NIEP – National Electricity Policy to Overhaul Power Sector, Spur Investment

The federal government approved the National Integrated Electricity Policy (NIEP), a sweeping framework that was charged as the most seeking attempt to overhale the chaotic and incredible electric sector.

The policy was to be stunned during the Federal Executive Council (FEC) meeting held Monday and designed to serve as a national roadmap aligned with the New Electricity Act, 2023. The announcement was made in a statement released by Mr. Ballji Tunji, special counselor in Strategic Communications and Media Relations to the Minister of Power Minister, G. Adebayo Adelbuu.

The NIEP replaced the outdated national electricity policy in 2001, with the federal government describing it as a plan for repairing the Nigerian Electricity Supply Industry (NESI). The new policy aims to improve service delivery, encourage investment, deepen regulation reforms, and quickly monitor the adoption of renewable and decentralized energy models.

Mr. Adelabu confirmed that the Implementation of The The policy has already been started. “This roadmap meets the critical challenges of the Nigerian power sector through a comprehensive framework that provides clear guidelines for sustainable generation, delivery, and distribution,” he said.

According to him, the NIEP is designed to address prolonged structural issues in the sector and is in line with the global best practice.

“This policy will guide stakeholders – federal and state governments, investors, developers, and consumers – as we navigate this energy transfer,” Adelabu said.

The policy was also satisfied with the mandate in Section 3 (3) of the Electricity Act, 2023, which forced the federal government, through the Ministry of Power, to publish a combined electricity policy and strategic implementation of the plan within a year of passing the law.

Policy Features: Bold but familiar

Among the well -known features of the NIEP are its emphasis on encouraging decentralized planning and providing auton states opened the door for States to draft their own electricity laws and explore independent generations and distribution plans.

But despite the decentralized structure, the NIEP adds other ambitious reforms aimed at direct response The root cause of disfunction of the Nigeria power sector. This includes:

• Separate the structures of the monopoly on the power generation and distribution in the strengthening competition.
• Strengthening capital investment, especially in electricity infrastructure and local manufacturing.
• Expanding renewable energy choices to reduce excessive reliance on the gas -powered generation.
• Improving energy efficiency, With the purpose of reducing system losses and decreasing Costs for consumers.
• Climate stability and maintenance, which aligns with the growth of Nigeria's power with global climate goals.

The government It says The policy is expected to attract private capital, enhance reliability, and restore the investor's confidence in a sector that has failed to survive to expectations despite the years of reform.

Another policy. Both problems?

However, not everyone is convinced that the new policy will deliver significant results. Nigeria is that -Overhaul its electrical laws and structures In the pastwith a small show for it.

The most significant expression began under President Olusegun Obasanjo in early 2000s, when the government dropped the National Electric Power Authority (NEPA) and initiated the Privatization of the sector. This led to the creation of successors of companies under the Nigeria's Power Holding Company (PHCN) and ultimately the transfer of distribution and generations of ownership to private operators in 2013.

However, privatization drive is not translated into enhanced power supply. Nigerians continue to endure frequent blackouts, while the national grid collapses several times each year. Access to electricity remains less than 60 percent nationwide, and businesses spend billions -billions of years in diesel generators to compensate for unreliable power.

While many stakeholders have expressed the optimization that the NIEP can finally guide the sector in a better direction, some have asked if the political will and institutional capacity required for implementation truly exist.

Observers point out that decentralization only will not fix the sector if the underlying issues – such as weak regulation, inadequate transmission capacity, lack of measurement, tariff shortages, and bad acquisition skills – are not met at the same time.

For example, the transmission company of Nigeria (TCN), which remains under government control, continues to be a vulnerable link to the chain chain, which is often failing to evacuate the generated power due to aged infrastructure and poor coordination. Meanwhile, regulatory bodies such as the Nigerian Electricity Regulatory Commission (NERC) often struggle to implement compliance or punish defaults.

The government It says Understand these concerns and assert that the NIEP has been developed in the mind of this history. Adelabu explained that the policy was formed by extensive contact with the stakeholder with the public and private sectors of players, civilian social organizations, state governments, academics, and donor agencies.

“This is not just another policy. This is a practical and inclusive document based on a wide consensus,” he said.

NIEP also incorporates mechanisms for coordination between federal and state actors and introduces reforms aimed at ensuring Tariffs that are deceptive cost while protecting vulnerable buyers.