NIGERIA

POWER
SECTOR
SCORECARD

@Electricity Lawyer electricitylawyer.com

NIGERIA POWER SECTOR SCORECARD
Nigeria's President, His Excellency, Bola Ahmed Tinubu during his Presidential
Campaign curated a six-plan agenda for Nigeria's power sector:
Putting an end to estimated billing in Nigeria;

Promote domestic manufacturing of prepaid meters;

Focus on solar energy utilization;

Increase rural electrification;

Promote Gas-to-power on a priority basis, and

Update the power sector governance reform.

This scorecard has been created by Electricity Lawyer, to measure consequent

developments and the outcome of each policy, regulatory and legal
measure(s) employed by the President's Administration for the advancement
of the Nigeria Electricity Supply Industry (NESI). The parameters were selected
based on measurable factors that indicate an advancement of the objectives
of each plan as itemized above.

©2023. All Rights Reserved. Electricity Lawyer® 01 OF 12

SCORECARD PARAMETERS PER PLAN

Plan 1 Putting an End to Estimated Billing

• Number of New Meter Connections: The percentage of currently

unconnected customers who are connected to a metering system reveals
the progress towards putting an end to estimated billing.

• Reduction of the current rate 56.69% unmetered customers: Connected

to the first parameter, a reduction in the rate of reported unmetered
customers from the current 56.69% also reveals the progress of the new
administration to putting an end to estimated billing.

• Financial provisions for advancing metering: Finances to procure and the

needed quantity of meters remains a challenge in Nigeria. The provision of
financial mechanisms to address these concerns also reveals the
advancement of the new administration towards putting an end to
estimated billing.

• Private investment in metering: The increase in the number of local meter

manufacturers reveals a progress by the administration in putting an end
to estimated billing.

©2023. All Rights Reserved. Electricity Lawyer® 02 OF 12

 Plan 2 Domestic Manufacturing of Meters

• Capacity building and training: Increasing the percentage of local meter

manufacturing requires an increase in local meter manufacturing
capacity. Training activities or measures that promote capacity building
for meter manufacturing advances the government's progress towards
enabling increased local meter manufacturers.

• Number of local manufacturers: The number of local meter

manufacturers is a yardstick for directly measuring the progress of the
current administration in this regard, as it reveals whether the percentage
has increased or remained constant since assumption of office.

• Local content requirement(s) for meter procurement: An increase in the

stipulated local content requirement from 40% also signals the readiness
of the government to promote local manufacturing, which in turns
encourages local meter manufacturers.

• Incentives for indigenous meter manufacturing: Local meter

manufacturers have raised concerns around high import duties and delay
in clearing manufacturing inputs. The provision of incentives that
addresses these concerns, shows an advancement by the administration
towards achieving increased domestic meter manufacturing.

©2023. All Rights Reserved. Electricity Lawyer® 03 OF 12

 Plan 3 Increase in Solar Energy

• Statistics of new solar installations from May 29 , 2023: The increase in

th

the number of solar installations directly reveals the advancement of the

new administration towards this goal.

• Statistics of Private sector investments/ Donor Agencies involvement in

solar energy: increasing solar energy utilization depends on the
willingness of the private sector to invest in commercial activities across
the solar energy value chain or invest in solar energy for self-generation.
The number of private investors ushered within the term of the current
administration, reveals the advancement of this plan.

• Percentage of Solar Energy in Electricity Mix: Related to the preceding

parameters, the increment of solar energy in the electricity mix in Nigeria
also reveals the advancement of this plan.

©2023. All Rights Reserved. Electricity Lawyer® 04 OF 12

 Plan 4 Increase in Rural Electrification

• Percentage of rural community/households with access to electricity

post May 29, 2023 (this date marks the commencement of the new
administration's term) in comparison with the percentage of electrified
rural dwellers pre-May 29, 2023: The increase in the percentage of rural
population with access to electricity in Nigeria is the ideal mode of
assessing the rural electrification rate in Nigeria.

©2023. All Rights Reserved. Electricity Lawyer® 05 OF 12

 Plan 5 Gas to Power

• Development of policies mandating gas to power on a priority one basis

and increase in local production or commercialisation of gas: This
parameter will measure specific policies that mandate a certain
percentage of gas produced locally to be channelled to the power sector
on a priority one basis. It will also track increase in local gas
commercialisation activities. The combination of both factors indicates
that a minimum percentage of gas will be channelled to power on a priority
1 basis.

• Development of Gas to Power infrastructure: The development of

infrastructure for the processing of gas and transport of gas within Nigeria
reveals the level of advancement to increasing Gas-to-Power utilization.

• Increase in the availability of gas to meet operational capacity of

thermal powered plants in Nigeria: Statistical data revealing an increase
in the gas availability for power generation in Nigeria is a direct means of
gauging the advancement of this plan.

©2023. All Rights Reserved. Electricity Lawyer® 06 OF 12

 Plan 6 Update Power Sector Governance Reform

• New laws, regulations and policies or amendments: The current

administration seeks to update the power sector governance framework.
New laws, policies, regulations, or amendments to extant statutory
instruments (primary and/or secondary) directly reveals the fulfillment of
this plan.

©2023. All Rights Reserved. Electricity Lawyer® 07 OF 12

 NIGERIA POWER SECTOR
SCORECARD TABLE
Year Year Year Year Initiatives (per
S/N Plan(s) Parameters quarter or year-
Q1 Q2 Q3 Q4 on-year)

1 Putting an End Number of New

to Estimated Meter Connections
Billing

Reduction of the
current rate
56.69% unmetered
customers

Financial
provisions for
advancing
metering

Private investment
in metering

2 Domestic Capacity building

Manufacturing and training
of Meters

Number of local
manufacturers

Local content
requirement(s) for
meter
procurement

Incentives for
indigenous meter
manufacturing
 Year Year Year Year Initiatives (per
S/N Plan(s) Parameters quarter or
Q1 Q2 Q3 Q4 year-on-year)

3 Increase in Statistics of new

Solar Energy solar installations
from May 29th, 2023

Statistics of Private
sector investments/
Donor Agencies
involvement in solar
energy

Percentage of Solar
Energy in the
electricity mix

4 Increase in Percentage of rural

Rural community/househo
Electrification lds with access to
electricity post May
29, 2023 (this date
marks the
commencement of
the new
administration's
term) in comparison
with the percentage
of electrified rural
dwellers pre-May 29,
2023

©2023. All Rights Reserved. Electricity Lawyer® 09 OF 12

 Year Year Year Year Initiatives (per
S/N Plan(s) Parameters quarter or year-
Q1 Q2 Q3 Q4 on-year)

5 Gas-to-Power Development of
policies mandating
gas to power on a
priority one basis
and increase in local
production or
commercialisation of
gas

Development of Gas
to Power
infrastructure

Increase in the
availability of gas to
meet operational
capacity of thermal
powered plants in
Nigeria

6 Update Power New laws,

Sector regulations and
Governance policies or
Reform amendments

©2023. All Rights Reserved. Electricity Lawyer® 10 OF 12

 References

1. NERC's 2023/Q1 report reveals that a total of 43.31% of registered customers are metered. This leaves 56.69%
unmetered. The referenced Report can be found via the following link<
h ps://nerc.gov.ng/index.php/library/documents/NERC-Reports/NERC-Quarterly-Reports/NERC-First-
Quarter-2023-Report/

©2023. All Rights Reserved. Electricity Lawyer® 11 OF 12

©2023. All Rights Reserved. Electricity Lawyer®