Electricity Act 2023

The Electricity Act 2023, signed into law by President Bola Ahmed Tinubu, opens Nigeria's electricity sector to broader participation by states and private investors.

The law allows states to build their own electricity markets and invites private capital into generation and supply. It is one of the most significant power-sector reforms in the country's history.

A new framework for electricity investment

The Act establishes a legal basis for a decentralised electricity market. States can now regulate and develop electricity markets within their territories, while federal institutions continue their national responsibilities.

This gives every state the power to design solutions that fit local demand, investment opportunities and the needs of homes and businesses. For developers of generation and supply projects, the Act provides a clear legal and regulatory route to structure, finance and operate their investments.

From legislation to better power

Presidential assent completed the legislative milestone and set the reform in motion. States are establishing their own regulatory institutions, and investors are developing projects under the new framework.

Why it matters to Nigerians

For decades, electricity was controlled almost entirely from the centre. The Electricity Act changes that. It widens the number of people and institutions able to solve power challenges, brings more capital into the sector and brings decision-making closer to the communities that depend on reliable electricity.

The Tinubu administration has laid the legal foundation for a more competitive, more responsive electricity sector, one built to power homes, industries and jobs across the federation.