2019 Chambers Global Practice Guide - Alternative Energy & Power

The principal legislation regulating the Nigerian Electricity Supply Industry (“NESI”) is the Electric Power Sector Reform Act (“EPSRA”) No. 6 of 2005.

The EPSRA provides for the structure of and ownership in generation, transmission, distribution and supply segments) within the NESI. The EPSRA establishes the Nigerian Electricity Regulatory Commission (“NERC”), which is the primary regulator of the NESI and provides for the licensing of participants in the NESI. Please note that the EPSRA can be downloaded from the following address: http://www.nercng.org/index.php/library/documents/Regulations/Electric-Power-SectorReform-Act-(EPSR)-2005/

Historically, the Federal Government of Nigeria (“FGN”) through the state-owned utility corporation, the National Electric Power Authority (“NEPA”), undertook the generation, transmission and distribution of electricity in Nigeria. However, following the enactment of the EPSRA in March 2005, the vertically integrated NEPA was unbundled and its employees, assets, liabilities, rights and obligations were first transferred into a holding company incorporated for that purpose, the Power Holding Company of Nigeria Plc (“PHCN”). Subsequently, PHCN’s assets, employees, liabilities, rights and obligations were then transferred to its successor companies (six generation, one transmission and 11 distribution companies). Save for the transmission company, Afam Power Plc and Yola Electricity Distribution Company Plc, the successor companies have been fully or partially privatised or concessioned. Thus, in the current climate, there is largely a combination of state-owned/private investor-owned generation, transmission, distribution and supply companies in the NESI.

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