PwC: execution discipline, collaboration will define next phase of electricity reform
The next phase of Nigeria’s electricity reform will be defined less by policy ambition and more by execution discipline and collaboration, PwC Nigeria’s new report on Nigeria’s power sector has
The next phase of Nigeria’s electricity reform will be defined less by policy ambition and more by execution discipline and collaboration, PwC Nigeria’s new report on Nigeria’s power sector has said.
PwC’s report titled, ‘Priority Actions for the Successful Evolution of Nigeria’s Multi-tier Electricity Market’, said Nigeria’s electricity reform has entered a phase where outcomes will be determined by disciplined execution and collaboration.
According to the report, released on Wednesday and made available to The Nation, the Electricity Act 2023 has reallocated responsibilities across federal and state institutions and enabled states to play a direct role in electricity market development.
PwC noted that Nigeria is now moving from a single national electricity market to a multi-tier system where federal and sub-national institutions share responsibility for regulation and outcomes.
This phase of reform, the report said, presents practical challenges, which require clear allocation of regulatory authority and effective coordination between institutions.
It also depends on sustained investment across generation, transmission and distribution, even as legacy debts and market weaknesses inherited from the former system must be addressed.
PwC’s report recalled that 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, the report said this structure did not deliver reliable electricity at the scale required for Nigeria.
But the Electricity Act 2023 restructured Nigeria’s power sector by devolving regulatory authority to states and enabling them to establish independent electricity markets.
The report noted that 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 said it convened its 2025 Annual Power & Utilities Roundtable on 27 November 2025 under the theme “Nigeria’s multi-tier electricity market: Imperatives for successful evolution,” to discuss how these changes are playing out in practice.
Discussions with representatives of federal and state institutions, utilities and financiers reflected a sector adjusting to decentralisation, commercialisation and the pursuit of financial sustainability, as states assume regulatory authority at various stages of readiness.
PwC said insights from that roundtable have been brought together in this new report to highlight the priority actions stakeholders identified as necessary for the reform to succeed.
From these discussions, the PwC report identified priority actions for the market to function effectively, including clarifying regulatory boundaries during transition, particularly for tariffs, standards and reporting across federal and state institutions.
Others include 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.
Other identified priority actions include building state execution capacity, including skills, data systems and phased enforcement approaches; structuring bankable projects, with defined demand, clear offtake and credible revenue frameworks.
PwC emphasised that with the Electricity Act 2023 reallocating responsibilities across federal and state institutions and enabling states to play a direct role in electricity market development, the central issue is now how these different players collaborate and how roles are exercised in practice.
It pointed out that discussions at the PwC’s 2025 Annual Power & Utilities Roundtable indicate that stakeholder actions across the electricity value chain are already adjusting to this new structure.
PwC’s Partner, Energy, Utilities & Resources Leader, West Africa, Pedro Omontuemhen, and Partner, Energy, Utilities & Resources, Bimbola Banjo, stated: “Federal institutions are focusing on grid stability, fiscal exposure and national coordination.
“States are beginning to exercise regulatory and planning authority within their jurisdictions. Distribution companies are operating under evolving oversight while managing persistent financial constraints.
“Off-grid providers are expanding access initiatives, and financiers are assessing opportunities through smaller, more clearly defined market units.”
While noting that these developments point to a shared execution challenge, the experts said reform progress will depend on whether actions taken by federal institutions, states, utilities and financiers are mutually reinforcing.
As they stated, “Where regulatory boundaries are clear, data is reliable, distribution risks are addressed and projects have defined revenue paths, reform momentum strengthens.
“Where alignment is weak, decentralisation increases uncertainty rather than confidence. A multi-tier electricity market does not, by itself, guarantee improved performance. It places higher demands on coordination, discipline and accountability.
“The pace and durability of reform will be shaped by how consistently institutions manage transition arrangements, address distribution sector constraints and apply rules across jurisdictions.”
