The Nigerian Electricity Supply Industry (NESI) is a critical pillar of the nation’s economic development, facilitating industrial growth and improving standards of living. Over the years, NESI has undergone substantial reforms aimed at enhancing efficiency, increasing private sector participation, and fostering competition. Central to these reforms is the structured progression of the Nigerian Electricity Market (NEM) through distinct developmental stages.
Section 6 of the market rules outlined three market development stages —Pre-transitional, Transitional, and Medium-term Market— designed to steer the NESI away from the monopoly-driven framework towards a fully competitive and effective electricity market. Each stage is supposed to represent a significant step towards establishing an efficient, reliable, and sustainable electricity supply market.
