The National Assembly of Nigeria (NASS) and the Nigerian Electricity Regulatory Commission (NERC) are jointly working on a legal framework to protect investment in the power sector. They would focus on energy theft, ensuring potential investors that their investments in power distribution and supply are protected.
The Nigerian power sector was overhauled in 2013, with the privatisation of the national electricity company and the development of a competitive electricity market. The dismantling of the national electricity company led to the creation of 6 generation companies, 1 transmission company (the sole that remained under government control) and 11 distribution companies. Currently, the state-owned Nigeria Bulk Electricity Trader (NBET) purchases electricity from generation companies and sells it to distribution companies. However, as NBET is not reimbursed in full for the power it acquires, generations companies are only partly paid for their outputs. These persistent revenue shortfalls have hindered plans to build private power plants in recent years. Despite reforms and the privatisation of generation and distribution companies, some 80 million Nigerians remain without access to electricity, the grid is plagued by frequent blackouts and the government has supported the power sector with NGN1,700bn (US$5.6bn) since 2017.
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