Electricity Policy as a Planning Tool for Sustainable Development in Nigeria.

Abstract

Electricity is a critical economic infrastructure essential for sustainable development, yet inadequate supply remains a serious challenge to Nigeria's socio-economic progress. This review paper aims to describe and analyze the evolution of various electricity policies implemented in Nigeria, identify their achievements, and determine the major barriers encountered. The study synthesizes historical and contemporary policy provisions, from the pre-colonial establishment of the Electricity Corporation of Nigeria (ECN) and Niger Dam Authority (NDA) to the post-independence National Electric Power Authority (NEPA). Key modern policy frameworks reviewed include the National Economic Empowerment and Development Strategy (NEEDS), the National Energy Policy (NEP), and the landmark Electric Power Sector Reform (EPSR) Act of 2005, which led to the unbundling of NEPA and the establishment of the Nigerian Electricity Regulatory Commission (NERC). Achievements derived from these reforms include the licensing of approximately 40 independent power producers (IPPs) and the development of a strategic 5-year plan aimed at increasing generation capacity to 35,000 MW by 2020. However, implementation faces significant policy and regulatory barriers, financing and investment challenges, technological setbacks, and critical grid instability. The paper concludes that a well-planned, scalable, and durable electricity policy is vital, particularly one that integrates rural electrification to reduce regional imbalance, mitigate environmental pollution from self-generated power, and ultimately serve as a foundational planning tool for comprehensive national development.