Nigeria’s notoriously fragile power grid is losing its appeal as investors pivot to state-led electricity deals that offer clarity and reliability. Thanks to the 2023 Electricity Act, which handed more authority to Nigeria’s 36 states, states can now regulate and structure localized power markets, offering clearer tariffs, reliable off-takers, and predictable cash flows. As a result, financiers are now backing integrated projects that link generation, distribution, and demand within specific geographic zones. Lagos is leading the charge with a phased, investor-friendly approach. While the national grid remains vital for transmission, this shift toward sub-national markets marks a decisive new era where “bankability” is determined by local governance rather than national promises.
Business Day
