Dear Vitus
PwC has published a new report on Nigeria’s power sector: Priority actions for the successful evolution of Nigeria’s multi-tier electricity market.
For decades, Nigeria’s electricity system was centrally managed by the Federal Government, from the Electricity Corporation of Nigeria (ECN) to the National Electric Power Authority (NEPA) and later the Power Holding Company of Nigeria (PHCN), with regulation overseen by the Nigerian Electricity Regulatory Commission (NERC). Despite multiple reform efforts, this structure did not deliver reliable electricity at the scale required for Nigeria.
The Electricity Act 2023 restructured Nigeria’s power sector by devolving regulatory authority to states and enabling them to establish independent electricity markets. Since 2025, several states have begun to exercise these powers. Utilities are adjusting to new oversight structures, including dual regulatory engagement, while investors are reassessing how projects are structured and financed in this decentralised market.
PwC convened its 2025 Annual Power & Utilities Roundtable to discuss how these changes are playing out in practice. The insights from that roundtable have been brought together in this report to highlight the priority actions stakeholders identified as necessary for the reform to succeed.
From these discussions, the report identifies the following priority actions for the market to function effectively:
Clarifying regulatory boundaries during transition, particularly for tariffs, standards and reporting across federal and state institutions Stabilising the distribution segment, including addressing liquidity constraints, legacy debt and infrastructure gaps Improving metering and data integrity, to strengthen billing accuracy, collections and regulatory credibility Building state execution capacity, including skills, data systems and phased enforcement approaches Structuring bankable projects, with defined demand, clear offtake and credible revenue frameworks
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