The need to make Nigeria’s electricity sector more reliable, financially sustainable and attractive to investors took centre stage at the ongoing Nigerian Bar Association (NBA) Annual General Conference in Port Harcourt, as experts examined the opportunities and regulatory hurdles confronting the industry. The “Let There Be Light” session brought together stakeholders to assess the impact of the Electricity Act 2023 and explore practical measures for translating its reforms into meaningful improvements in power supply.
Speaking on the impact of the Electricity Act 2023, Atiku Jafar highlighted the decentralisation of Nigeria’s electricity sector, noting that the legislation gives states greater powers to develop and regulate their electricity markets. He also pointed to the harmonisation of previously fragmented electricity-related laws as one of the significant developments introduced by the Act.
However, the panel observed that legislative reform alone would not resolve the problems confronting the sector. Mr. Mutese identified revenue and liquidity constraints affecting Distribution Companies (DISCOs), highlighting the gap between the provisions of the Electricity Act and their practical implementation. Prof. Olawuyi, SAN, similarly argued that the success of the electricity market should not be judged solely by the availability of power, but also by the predictability of power purchase agreements and the availability of modern infrastructure.
The speakers also examined the commercial challenges undermining the financial stability of the electricity value chain. Electricity theft, meter bypass and difficulties in recovering the full value of electricity supplied were identified as major concerns. The panel explained that weak revenue collection by DISCOs has wider implications, including difficulties in meeting financial obligations to Generation Companies (GENCOs). Commercial and industrial consumers, with their relatively predictable demand, were identified as an important part of creating a more sustainable revenue structure.
Consumer protection also featured prominently in the discussion, with participants calling for a balanced framework that protects vulnerable consumers while ensuring that those who can afford electricity are accurately billed for their consumption. The panellists further stressed the need for appropriate consequences for electricity theft and meter bypass. They also highlighted the complaint-resolution mechanisms under the Electricity Act, through which dissatisfied consumers can escalate unresolved complaints from DISCOs to the Nigerian Electricity Regulatory Commission (NERC) and, where necessary, the courts.
The session ultimately underscored that Nigeria’s power-sector transformation will require more than new legislation. According to the discussions, attracting investment will depend on effective implementation, improved liquidity, modern infrastructure, accountability and predictable regulation, alongside stronger consumer protection. The central message from the session was clear: Nigeria’s electricity reforms must move from legislation to effective implementation if the country is to achieve a dependable and investment-ready power sector.