The Nigerian president has given his assent to the new electricity bill, which empowers states, companies and individuals to generate, transmit, and distribute electricity. The newly-signed act provides a comprehensive legal and institutional framework for the post-privatisation phase of the Nigerian power sector, aiming to attract private sector investments in the power value chain and improve access to electricity, particularly in rural and underserved areas. States can issue licenses for mini-grids and power plants, but not for inter-state or international distribution. In addition, the act exempts small-scale electricity generation and distribution below certain capacities from requiring a license.
The Nigerian Electricity Regulatory Commission (NERC) will continue to regulate electricity business until states pass their own electricity market laws. NERC's functions include overseeing the industry activities, promoting competition, and establishing obligations for electricity services. The Electricity Act also introduces obligations for renewable energy generation and purchase, aiming to stimulate investments in the sector.
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