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Nigerian Energy Sector: Legal & Regulatory Overview (2015)

Nigeria has made a major transition from a vertically integrated, publicly-owned electricity network to a largely privately-owned unbundled electricity network, with the separation of the different segments of electricity business through a process called ‘unbundling’. The reforms have moved Nigerian power sector from a state monopoly to a competitive electricity market. Prior to the 2005 reforms, Nigeria, with a population of 165 million people, and an average generation of about 3,800 megawatts (MW), had a low per capita consumption. Thus, Nigeria embarked on the liberalisation and privatisation of electricity sector.