By Goodluck Braide
A major obstacle to industrialisation and sustainable economic development in sub-Saharan Africa has been acute electricity shortages that successive governments had tried to address in Nigeria. In spite of efforts to improve the power situation, the sector was still contending with many challenges ranging from monopoly, inefficient administration, and limited output, resulting in epileptic power supply across the country. This was a scenario that President Bola Ahmed Tinubu decided to tackle headlong when he came to power in May 2023. The president’s reform in the power sector, aimed at tackling electricity shortages, is driven by the Electricity Act 2023.
Electricity shortage is a remarkable departure from the Energy Trilemma Framework of the World Energy Council that emphasises the need for energy security (reliable electricity supply) and energy equity (affordable and accessible electricity). The World Energy Council’s emphasis on energy security and equity is consistent with Goals one and eight of the SDGs that seek to achieve universal access to electricity for enhanced productivity and improved health and educational services, making it a reliable vehicle for poverty reduction by 2030.
The Electricity Act 2023 was enacted to replace the Electric Power Reform Act 2005 and strengthen the National Integrated Power Project (NIPP) with the provision of a legal framework designed to integrate all energy sources and remove monopoly in the power sector. This legislation, enacted to drive the Renewed Hope agenda of President Bola Ahmed Tinubu, legally empowers state governments to generate, transmit, and distribute electricity, thereby reducing over-reliance on the national grid. Its objectives are in alignment with the Energy Trilemma Framework of the World Energy Council seeking more resilient and inclusive energy systems that meet the needs of rising populations, especially underserved rural communities.
In the Electricity Act 2023, the Niger Delta Power Holding Company (NDPHC) is mandated to obtain and renew electricity licences, through the National Electricity Regulatory Commission (NERC), for power generation, transmission, and distribution. This mandate includes powers to sanction licenses that fail to meet operational standards and are incapable of driving the vision of the NIPP.
The NDPHC was conceived in 2004 to address Nigeria’s chronic power shortages. Its inception in 2005 was with a clear mandate to steer the country’s energy revolution by driving the objectives of the NIPP to achieve universal access to electricity.
However, providing universal access to electricity requires adequate investments in the power sector- a fact that was not fully contemplated prior to the advent of the Electricity Act 2023. In recognition of this fact, the NDPHC has invested over N500 billion in transmission infrastructure alone. It has also built over 10 power plants, adding more than 4,000 megawatts capacity to the national grid. It has also successfully executed over 50 substations, including 330 and 132 KVA substations, line bay extensions, and transformers. Additionally, the NDPHC has contributed over 5,000 MVA in transformer capacity that has benefitted the Transmission Company of Nigeria (TCN) and positively impacted the distribution capacities of all 11 DISCOs operating in the country.
Under the leadership of Engr. Jennifer Adighije, the NDPHC is vigorously implementing a policy of recovering and optimising the performance of its assets. In the last one year plus since Engr. Adighije took over its leadership mantle as Managing Director and Chief Executive Officer, the NDPHC has successfully revived its dormant turbine units and power plants across the country. On completion of a hot gas path inspection, it has revived one unit in the Calabar NIPP. The company has also recovered and revived other NIPPs in Sapele, Benin, and Omotosho.
In less than two years, the NDPHC has restored five turbine units, adding 625 megawatts to the national grid capacity and providing sustainable solutions to the country’s energy crisis. The recovery and resuscitation of key assets, including the Omotosho and Alaoji power plants, have boosted the NDPHC’s generation capacity, positioning it to meet the energy needs of industrial off-takers once regulatory approvals are secured. This has improved not only its mechanical availability and load factors, it has also contributed to Nigeria’s power generation capacity which peaked at 6,000 megawatts in March 2025.
The policy shift from focusing on building new plants to maximising existing infrastructure aligns with the goals of the Power Sector Recovery Performance Operations project in many ways. Converting the idle capacities of dormant turbines strengthens the company’s financial sustainability and reduces reliance on government’s subsidies. Through the strategic asset recovery drive, approximately 750 MW was restored in 2025. This provides a critical base-load power needed to address incessant national grid collapses witnessed in the country.
The end of the tunnel appears visible as increased investor confidence in the power sector has been bolstered by NDPHC’s proven track record of unlocking stranded power with the delivery of accessible electricity to industrial clusters and communities. In 2025, the Kano State chapter of the Manufacturers Association of Nigeria (MAN) signalled its intention to bypass electricity distribution companies and source power directly from the NDPHC. The move, according to the manufacturers, was to address electricity shortages that had hampered industrial productivity and stifled the growth of the state’s manufacturing sector. The NDPHC had assured the manufacturers of its readiness to partner with them under the eligible customer framework, noting that such a partnership would not only drive industrial growth, but also create jobs and promote socioeconomic development nationwide.
Implementing phase two of the NIPP demands transitioning from fossil fuels to renewable energy sources for power generation. This requires a carbon neutral electricity generating system to meet the net zero target by 2060. To this end, the NDPHC is collaborating with state governments to accelerate the pace of energy transition, using renewable power sources like solar panels and hydro plants. Recently, the company signed a joint development agreement with the National Agency for Science and Engineering Infrastructure (NASENI) to deploy solar-powered electricity plants for the revival of the Shalawa Industrial Estate in Kano.
NDPHC’s transformation of Nigeria’s energy landscape is anchored on the three pillars of optimising the performance of existing power plants, strengthening organisational processes for operational efficiency, and boosting human capital development and technology to enhance productivity.
It is no brainer that the NDPHC could not have achieved so much without the guidance of its supervising Federal Ministry of Power which is working tirelessly to fully implement the Electricity Act 2023 through several initiatives. Under the ministry’s leadership, over $2 billion investments have been attracted to the power sector to guarantee its financial stability. This has led to a significant growth in the sector’s revenue profile to the tune of N1.7 trillion. Since the inception of the Tinubu administration, the Federal Ministry of Power has focused on the need to reduce government debts owed service providers in the power sector, as evident in his securing of a N4 trillion bond to pay off legacy liabilities in October 2025.
Less than a year later, President Tinubu approved a N3.3 trillion payment plan to offset legacy debts owed to power generating companies. This followed a final review of the legacy debts that had stifled smooth operations of the power sector since 2015. The final settlement agreement, signed by 15 power plants, has a total obligation of N2.3 trillion. The Federal Government has so far raised N501 billion to fund the payment, with N223 billion already disbursed to the creditors.
The implication is that the Tinubu administration is prioritising power to boost industrialisation and promote entrepreneurship for job creation through improved electricity supply. This is consistent with the ideals of its Renewed Hope agenda that promises a new deal in governance.
The world’s modern economic history shows that electricity is pivotal to industrial take-off towards manufacturing economies in the global south. This is evident in the collective experience of emerging Asian markets like China, India, and Bangladesh, all of whom have successfully utilised universal access to electricity to unleash sustainable economic growth and development. The Asian countries did not just provide lighting but used deep electricity penetration for enhanced productivity in agriculture and manufacturing.
This is the same path Nigeria has been treading since the introduction of the enactment and subsequent implementation of the Electricity Act. It is gratifying to note that a few states like Enugu, Ekiti, Ondo and Bayelsa are taking advantage of the landmark devolution of power generation and transmission under the Tinubu administration. Recently, President Tinubu inaugurated a 60 MW Gas Turbine power project designed to supply off-grid electricity to scores of communities in Bayelsa State. As Governor Douye Diri confirmed during the inauguration, the Federal Government has substantially supported the state’s independent power project with waivers for the importation of equipment.
The journey towards achieving electricity for all may not have been too smooth due to a rapidly growing population, weak infrastructure and insecurity occasioned by vandalism. These are some of the challenges in the power sector that the Electricity Act 2023 sets out to address. The arrival of this all-important piece of legislation, variously described as a watershed moment for Nigeria, brings sanity to the power sector. As facts and figures indicate, implementation of the Electricity Act 2023 – through the instrumentality of the NDPHC – is gradually and steadily deepening universal access to electricity in Nigeria. With sustained investments and policy consistency, the future of Nigeria’s power sector appears quite promising.