By Peter Egwuatu

The Federal Government, PwC Nigeria and other stakeholders have emphasised the need for collaboration among regulators and operators in order to improve the supply of power in the country.

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

 The forum, themed “Nigeria’s multi-tier electricity market: Imperatives for successful evolution”, explored the key actions required to operationalise the country’s recent power reforms, on the back of the Electricity Act 2023.

Speaking at the Round table discussion, Adebayo Adelabu, Minister of Power, said : “Under the Renewed Hope agenda of President Bola Ahmed Tinubu, the Nigeria power sector has entered a new phase defined by decentralisation, liberalisation, compelling market and tariff reforms, and a complete shift from a single national market to a multi-tiered, multi-actor electricity ecosystem. The passage of the Electricity Act of 2023 has reformed our power sector landscape. It allows for sub-national governments to work with private sector investors and developers to generate, transmit and distribute electricity within their countries and territories. Today, Nigeria has state electricity markets at different stages of development, creating new opportunities for innovation and investment”.

Continuing, he said: “ And we say, for us to be able to consume what we produce and produce what we consume, there must be a fairer and more active industrial sector. Without the power sector, we cannot achieve that. So, I say that the Electricity Act of 2023 lead us to two things.

Number one was decentralisation. Instead of one central government catering for the power sector needs of our people, we now have federal government, a task for state government, 774 local governments and the Federal Capital Commission to undertake this task. Of course, what one person will do and what almost 1,000 people will do is quite different in terms of expected productivity, efficiency and effectiveness.

“The other issue is about liberalisation. Before, the power sector was a no-go area for private investors. It was always 100% funded by the federal government.

And the funding needs, the investments required for this sector to become grounded can never be provided by the government alone. So, there are a lot of competing sectors the federal government has to cater for. They will not be able to make adequate funds available for the power sector and that is why the private sector is needed”.

Commenting, Pedro Omontuemhen, Partner and Leader for Energy, Utilities and Resources at PwC Nigeria, said: “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).

In his remark, Biodun Ogunleye, Lagos State Commissioner for Energy and Mineral Resources, said : “ I strongly believe that by now all of us have settled for the  multi-carried structure, those who are not yet convinced that there’s a need for us to go this route, I’m still pleading. I want to say, give us three years. After three years, if we have not impacted at a speed, and whatever that you are proud of, bring up all the changes you want to be done to the bill.

“But for now, give us three years. Let this multi-carried structure, no matter how complex, no matter how challenging it is at the beginning, let’s allow it to run, let’s allow it to scale. Let the nation have an opportunity of another approach to resolving the culture of darkness that seems to be, they will say, is about vested interests and all that.

But I want to tell you, you cannot be doing the same thing the same way for several years and not want to change”.