The federal government of Nigeria has made another notable move to improve the country’s power sector with the recent launch of the zero draft of the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP). This plan seeks to put the country on a route toward a strong, long-lasting, and diverse electricity industry. Adebayo Adelabu, the Minister of Power, spoke at the presentation ceremony in Abuja and characterized the policy as essential to the country’s progress toward building a strong, sustainable, and inclusive power sector that satisfies the desire of every Nigerian.
Being a comprehensively designed policy document, the NIEP-SIP specifies targeted interventions at every stage of the electricity value chain, from distribution and off-grid areas to generation and transmission. The minister underlined that the strategy is the result of in-depth discussions with development partners, key stakeholders, and industry experts. He pointed out that the process that led to this accomplishment was laborious and cooperative, motivated by a shared desire to solve the urgent issues facing the Nigerian electricity supply sector.
Tinubu’s administration committed to resolving inconsistencies.
According to him, the policy framework ensures that the electricity industry is robust and effective by anticipating future demands in addition to responding to present circumstances. Acknowledging the shortcomings of the antiquated National Electric Power Policy of 2001, the Ministry launched the INEP-SIP development within a year of the Act, as per Section 3(1) of the Electricity Act, 2023. As mandated by EA-2023, the Federal Ministry of Power started working on the NIEP-SIP with the goal of addressing industry issues and leveraging potential found during a two-day comprehensive retreat in December 2023.
As previously disclosed, the minister reiterated that the Tinubu-led administration is committed to resolving inconsistencies in the power sector’s policy formulation, implementation, and project execution. The Minister made the point that the policy dialogue considers our path and compels us to face the intricacies, setbacks, and victories that have molded our policies to this day. The President’s strong commitment to leveraging the power sector to drive industrial development and Economic Growth is demonstrated by his signature of the Electricity Act, which liberalized and expanded the industry, he added.
Various subject matter is covered in the NIEP-SIP policy.
Specifically, the NIEP-SIP policy will act as a roadmap for the development of Nigeria’s energy sector, covering subject matter like rural electrification, public-private partnerships, universal access to electricity, policies specific to power sources, bulk power purchases, and the supervision of local distribution in rural areas, among other things, as directed by the Federal Government in accordance with the law. Another significant milestone for Nigeria’s power sector this year was the signing of the Electricity Act (Amendment) Bill, 2024 into law by President Tinubu.
This legislative measure is a major step forward with Nigeria’s realization of an inclusive and Sustainable Energy framework. The law was proposed by Honorable Babajimi Benson, a representative for Lagos State’s Ikorodu Federal Constituency. It was approved by the House of Representatives on July 27, 2023, and the Senate on November 14, 2023. To address the development and environmental concerns of host communities, the Electricity Act (Amendment) Bill, 2024, allocates 5% of the actual yearly operating expenditures of power Generating Companies (GenCOs) from the previous year to the development of those communities.
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In 2023, President Tinubu approved the Electricity Act 2023 which repealed the Electricity and Power Sector Reform Act of 2005. It was designed to enable states, businesses, and private citizens to produce, transfer, and distribute electricity, therefore demonopolizing the country’s electrical generation, transmission, and distribution. States may grant licenses to private Investors under the Act so they can run power plants and mini-grids inside the state. On the other hand, interstate and international distribution of power is prohibited by the Act. Among other provisions, these developments shows that the power sector is moving toward becoming more inclusive and decentralized, supporting community- and state-led efforts to upgrade Nigeria’s Infrastructure and electricity distribution.