Nigeria’s electricity reform needs regulatory clarity and federal-state alignment — PwC

By Abubakar Yunusa

Nigeria’s ongoing electricity sector reforms hinge on clearer regulatory frameworks and stronger coordination between federal and state authorities.
This is according to a new report by PricewaterhouseCoopers (PwC) in its report titled “Priority actions for the successful evolution of Nigeria’s multi-tier electricity market”.
The report comes as Nigeria continues its transition toward a multi-tier electricity system with expanded roles for state governments and sub-national regulators.
PwC’s analysis highlights growing policy and operational tensions as reforms deepen, particularly around jurisdiction, investment certainty, and market coordination.
PwC argues that regulatory uncertainty and overlapping mandates between federal and state authorities remain one of the biggest risks to Nigeria’s electricity reforms. The firm stresses that without clear rules, the transition to a decentralised electricity market could create confusion for operators and investors.
“Regulatory clarity and federal and state alignment… As states exercise authority over intra-state electricity activities, overlap with federal institutions is unavoidable,” the report stated.
“Where transition arrangements are unclear or inconsistent, uncertainty rises for utilities, investors and consumers. Clear boundaries and agreed transition rules provide the foundation on which all other elements of reform depend,” it added
“Data shared by utilities and reinforced by the Honourable Minister highlighted persistent liquidity stress, legacy debt, metering gaps and ageing infrastructure,” PwC noted.
“Where consumption data is unreliable, billing disputes persist, collections weaken and regulatory decisions become harder to sustain,” the report said.
The firm concluded that clarity in governance, data systems, and transition rules is essential for stabilising the reform process.