A sustainable and inclusive electricity sector is vital for driving economic growth in Nigeria. To enhance electricity access for its industry and rapidly growing population, it needs investment and innovation. The UK Nigeria Infrastructure Advisory Facility (UKNIAF) is working with the Federal Government of Nigeria to create long-term plans, policy targets and roadmap that will deliver this, and help advance Nigeria’s economic growth and development agendas.
On 27 February, UKNIAF held a milestone event that marked the handover of the Nigeria Integrated Resource Plan (NIRP) 2024 to the Government of Nigeria’s Federal Ministry of Power alongside the public unveiling of the National Integrated Electricity Policy. Together, these initiatives establish the policy and roadmap to guide Nigeria’s energy sector towards universal, least-cost electrification while meeting the country’s energy transition goals.
UKNIAF – funded by FCDO and managed by Tetra Tech International Development Europe – aims to catalyse sustainable economic growth by transforming Nigeria’s capacity to plan, finance, deliver and manage climate-smart infrastructure through technical assistance to the Federal Government of Nigeria and selected state governments.
The role of NIRP and NIEP
The NIRP is Nigeria’s first least-cost energy security plan, designed to ensure that the country can provide affordable and reliable energy. It establishes the generation, transmission and distribution requirements to meet Nigeria’s long term energy needs through sustainable and cost-effective supply.
The plan tackles critical challenges in low-carbon energy planning by forecasting future energy demands, estimating future energy costs, identifying optimal locations for new power plants, and guiding the development of infrastructure needed to deliver electricity. Ultimately, the NIRP is an important framework for balanced and efficient power planning, supporting a stable environment for longer-term investment in the sector.
Complementing the NIRP is the NIEP, which serves as a policy roadmap to a reliable, sustainable and investor-friendly power sector. The NIEP sets goals for electricity generation and delivery, adhering to the new legislative mandates provided in the Electricity Act of 2023. A key focus is on achieving universal access to electricity through decentralisation, aiming to extend electricity access to unserved and underserved communities. Additionally, the NIEP aims to encourage private sector participation and foreign direct investment by making sure that regulations are consistent across both national and state electricity markets, ultimately promoting job creation and domestic manufacturing to enhance Nigeria’s economic growth.
Collaboration for a sustainable energy future
The event brought together high-profile attendees, including ministers, members of the Interministerial Power Sector Group, donor partners and private sector executives. This gathering provided a platform for engaging stakeholders in meaningful discussions about the high-value investments needed in Nigeria’s electricity sector, exploring opportunities for innovation and sustainable energy development while emphasising the importance of collaboration between government, private sector and international partners. The discussions highlighted the Federal Government’s commitment to electricity access and increased investment in the sector, setting the stage for a transformative approach to energy planning in Nigeria.
During the opening address, the Federal Minister of Power Adebayo Adelabu highlighted the importance of the policy integration, stating, “Today marks a turning point in our nation’s energy landscape. The integration of the NIRP with our National Integrated Electricity Policy lays the foundation for transformative investments in generation, transmission and distribution.” The Minister emphasised the government’s dedication to creating an enabling legal and regulatory environment that encourages both local and international private sector participation.
UKNIAF’s commitment to developing Nigeria’s energy sector
UKNIAF – alongside the Federal Government of Nigeria and donor partners – has played a key role in the development of the NIRP and NIEP, representing years of collaboration, research and strategic planning aimed at shaping a more sustainable and reliable energy future for Nigeria.
“UKNIAF is proud to support this catalytic initiative. Our support in developing the IRP and NIEP underscores our commitment to Nigeria’s power sector reform and reinforces the country’s promise as a premier destination for sustainable energy investment.”
Frank Edozie, UKNIAF Team Leader
