Two years into the implementation of the Electricity Act 2023, Nigeria’s power sector reform is now being tested under real market conditions. Recent tariff actions by some states indicate that sub-national electricity markets are becoming active and are shaping the outcomes for operators, consumers, and the wider economy.
Against this backdrop, PwC convened its 2025 Annual Power & Utilities Roundtable on 27 November 2025 under the theme
“Nigeria’s multi-tier electricity market: Imperatives for successful evolution.”
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.
While new licensing, financing and operating models are emerging, long-standing structural constraints continue to shape reform outcomes. Liquidity pressures within the distribution segment persist. Subsidy structures remain in transition. Metering gaps and ageing infrastructure continue to affect service delivery and revenue assurance. In the renewable energy space, the main constraint to scale is not resource availability, but limited access to early-stage project development finance and bankable investment structures.
A key message from our roundtable was that the next phase of reform will depend on execution discipline and collaboration. Stakeholders emphasised the need for clearer federal and state regulatory alignment, stronger cooperation between regulators and utilities, faster metering and network rehabilitation, credible tariff frameworks, and more effective mechanisms to mobilise private capital across distribution, transmission and renewable energy.
As Nigeria’s power sector adapts to the evolving multi-tier market, industry players must also respond to broader global shifts. Climate change, artificial intelligence (AI) and geopolitics are reshaping how electricity is generated, financed, and consumed. Failure to adapt risks leaving Nigeria’s power market uncompetitive in a rapidly changing global energy landscape.
This report distils the policy direction articulated by the Honourable Minister of Power, and the market insights shared by senior leaders from state government, distribution company, rural electrification agency, and a multilateral financial institution. The discussions at our roundtable reaffirmed that the success of Nigeria’s multi-tier electricity market will depend on sustained collaboration, disciplined execution and coordinated action across the entire electricity value chain.
The report identifies the following priority actions for the market to function effectively:
- Clarifying regulatory boundaries during transition, particularly for tariffs, standards and reporting across federal and state institutions
- 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
- Building state execution capacity, including skills, data systems and phased enforcement approaches
- Structuring bankable projects, with defined demand, clear offtake and credible revenue frameworks
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