Discusses the various statutes behind public-private partnership as it relates to the electricity reform process in Nigeria.

1. THE STATUTORY BACKING BEHIND PUBLIC-PRIVATE
PARTNERSHIP AND ELECTRICITY REFORM IN
NIGERIA
OLAWALE ATANDA
JULY, 2017.

2. Brief history behind the
electricity reform in Nigeria
Nigeria’s electricity sector was in dire straits pre-1999. Of the 79 generation
units in the country, only 19 units were operational. Average daily generation
was 1,750MW
When the 4th republic commenced in 1999, the government initiated the
reform process with the implementation of the Electric Power Implementation
Committee (EPIC). The committee drafted the National Electric Power Policy
(NEPP) in 2001 leading to the 2005 Electric Power Sector Reform (EPSR) Act.
This was done too address the twin issues of NEPA’s poor operational and
financial performance

3. Brief history behind the
electricity reform in Nigeria
The first step in the reform process was the forming of a successor company,
PHCN, to take over the assets of the NEPA.
PHCN was subsequently unbundled into eighteen (18) successor companies
that consisted of eleven (11) distribution companies (DISCOS), six (6)
generation companies (GENCOS) and a transmission company, Transmission
Company of Nigeria (TCN)

4. Statutory regimes regarding
PPP and electricity reform
The Constitution
Both the Federal Government through the National Assembly and state
governments through their respective houses of assembly have the
constitutional power to make laws regarding electricity and the establishment
of electric power stations.
• Section 13 (a), Concurrent Legislative List of the Second Schedule of the
Constitution, (CFRN) 1999.
• Ibid, s. 14 (a)

5. Infrastructure Concession Regulatory
Commission Act (ICRC Act)
The ICRC Act is the law primarily in charge of PPPs in Nigeria.
The Act gives government ministries, agencies, corporations and bodies the
power to grant concessions to a private contractor for the financing,
construction, operation and maintenance of any infrastructure that is
financially viable or any development facility of the Federal Government.
Section 1 (1) Infrastructure Concession Regulatory Commission Act, 2005.

6. Electric Power Sector Reform Act
(EPSRA)
The EPSRA was enacted in 2005. It is the legal framework upon which the
reforms in the electricity sector is based. The act seeks to:
•provide legal backing to the initial and successor companies that took over the functions
of NEPA,
•to develop competitive electricity markets,
•to establish a commission that will act as a watchdog in the electricity sector
•to provide for the licensing and regulation of the generation, transmission, distribution and
supply of electricity.

7. Electric Power Sector Reform Act
(EPSRA)
The act provides for the
development of a
competitive market for
electricity services in
Nigeria. See generally s.
25-30 EPSRA
The act also provides for
a bulk trading company,
(the NBET), to purchase
and resell electrical
power and ancillary
services from
independent power
producers and from the
successor generation
companies.
IPPs can either sell
electricity to the bulk
trading licensee or to the
successor distribution
companies and eligible
customers.

8. Electric Power Sector Reform Act
(EPSRA)
The act sets up an independent regulator, NERC:
• to create, promote, and preserve efficient industry and market structures
• to ensure the optimal utilisation of resources for the provision of electricity services,
• to make sure adequate electricity supply is available to consumers
• to license and regulate persons engaged in the generation, transmission, system
operation, distribution, and trading of electricity, amongst others. Section s.31-32
EPSR Act.

9. Public Enterprises (Privatisation and
Commercialisation) Act 1999
The act provides the legal framework for the privatisation of government-owned enterprises
in Nigeria.
The act also establishes the National Council on Privatisation (NCP) which is saddled with the
responsibility of approving guidelines and criteria for valuation of public enterprises for
privatisation and choice of strategic investors, approving public enterprises to be privatised
or commercialised amongst others.
The act further establishes the Bureau of Public Enterprises (BPE).

10. Public Procurement Act, 2007
The Public Procurement Act (PPA)
establishes the National Council on
Public Procurement and the Bureau
of Public Procurement.
They act as the regulatory authorities
responsible for the monitoring and
oversight of public procurement,
harmonizing the existing government
policies and practices by regulating
and developing the legal framework
for public procurement in Nigeria.

11. Public Procurement Act, 2007
The act states that the provisions of the act shall apply to all procurement of
“goods, works, and services”
In the interpretation section, "goods" means objects of every kind and
description including raw materials, products and equipment and objects in
solid, liquid or gaseous form and electricity as well as services incidental to
the supply of the goods.

12. Conclusion
The PPP industry in Nigeria is a well-coordinated one. There exist various
statutes and institutions concerned with the establishment, supervision and
implementation of PPPs especially as it relates to the reform in the power
sector.
The power sector reform was built on a solid foundation of statutes and laws
that guide its operations. However, there is a gap between promulgation and
implementation. Much work still has to be done in relation to the effective
execution of the objectives of the power sector reform.

13. THANK YOU