Chimeremeze Nwachukwu

22nd May, 2025 : 9;16am

When you flip a switch and your room suddenly brightens, or your fridge hums back to life after a blackout, it almost feels like magic. But behind that flick of the wrist are three very real steps: generation, transmission, and distribution of electricity. Here in Nigeria, when the lights go out, everyone jokes that “NEPA don take light”, but have you ever paused to wonder exactly how “NEPA” takes the light, or how they deliver it in the first place?

Electricity itself has been around in theory since Michael Faraday’s experiments back in the 1820s and ’30s, but getting a reliable flow of power from a riverbank or gas plant all the way to your home or office involves some heavy engineering. First, electricity is generated, whether by burning gas or oil, harnessing the force of water, capturing the wind, or even converting sunlight. At Nigerian power stations, generators usually produce voltage in the range of 11.5–16 kV, which is immediately stepped up to 330 kV so it can travel long distances with minimal losses. Next comes transmission, where that high-voltage current races along overhead lines or underground cables. At a transmission substation, it’s stepped down to 132 kV, and then again at injection substations to 33 kV, ready for local distribution. Finally, the distribution networks take over, bringing the voltage down to 11 kV, then to 415 V, and ultimately to the 240 V that powers your lights, fans, laptops, and other appliances. [1]

It’s a fascinating journey, but one we should look at through an even more unusual lens. In the rest of this article, we’ll explore each stage of Nigeria’s electricity supply chain not just as a technical process, but as a legal framework, examining the laws that govern generation, the regulations that guide transmission, and the rules that protect you, the consumer. By the end, you’ll understand not only how electricity flows, but also why it works the way it does, and what rights and responsibilities you have every time you press that switch.

Let's begin with how it starts: The Generation of Electricity

Power generation in Nigeria is all about turning natural resources, like gas, water, and even sunshine, into the electricity we need every day. Across the country, power plants burn gas or oil, spin turbines in hydroelectric dams, and, of recent and increasing use, solar panels to produce energy.  When we talk about gas generation, we mean power plants that burn natural gas (a fuel pulled from underground) to heat water into steam, which then spins turbines and makes electricity. Hydroelectric generation uses flowing or falling water, usually from a dam, to turn turbines directly, and solar generation captures sunlight with panels and converts it straight into electricity. These plants feed electricity into the national grid, a system of interconnected power lines, where it begins its journey toward homes and businesses.

Now, you may be asking, what law is in charge of power generation in Nigeria? That’s the  Electricity Act of 2023, which repealed the Energy Power Sector Reform Act (EPSRA). The law brought reforms to the power Sector with one of its intentions being to expand the Generation of electricity in Nigeria by opening up the activity of electricity generation in Nigeria to state governments and private investors, especially in the production of electricity from Renewable energy sources. The Act also created the Nigerian Electricity Regulatory Commission to oversee the electricity industry and allows this Commission, via Section 65 of the Electricity Act of 2023, to issue licenses for Power Generation.  Before recent times, we had 6 Generation Companies in Nigeria, which are termed as Successor Generation Companies. They are called "Successor" because they inherited the role of generating electricity from the former Power Holding Company of Nigeria (PHCN) following the privatization of power in 2013. These Successor Generation Companies are  in the table below:

Generation Company       Plant     Capacity

1. Afam Power Plc(1-V),   Thermal,   987.2MW

2. Egbin Power Plc,   Thermal,   1,320MW

3. Kainji/ Jebba, Hydro Electric Plc,     Hydro,   1,330MW

4. Sapele Power Plc,   Thermal,   1,020MW

5. Shiroro Hydro Electric Plc,     Hydro,     600MW

6. Ughelli Power Plc,     Thermal,     942MW

In Addition to these Generation companies, we have added, through further allowances to private participation in the electricity industry in Nigeria, more generation companies, with the introduction of  Independent Power Producers (IPPs) and National Integrated Power Projects (NIPPs). IPPs are power plants owned and managed by the private sector. Although there are Independent Power Producers (IPPs) existing in Nigeria prior to the privatisation process, the Nigerian Electricity Regulatory Commission (NERC) has issued about 70+ licenses to Independent Power Producers to improve the power situation in the country. The existing IPPs include Shell – Afam VI (642MW), Agip – Okpai (480MW), and AES Barges (270MW).  The NIPPs also come in as an integral part of the Federal Government’s efforts to combat the power shortages in the country. It was conceived in 2004 as a fast-track public sector-funded initiative to add significant new generation capacity to Nigeria’s electricity supply system, along with the electricity transmission and distribution and natural gas supply infrastructure required to deliver the additional capacity to consumers throughout the country. There are 10 National Integrated Power Projects (NIPPs), with a combined capacity of 5,455 MW. Some very notable NIPPs are Alaoji Generation Company Nigeria Limited, with a capacity of 1,131MW, and Geregu Generation Company Limited, with 506MW. All these efforts and activities are tied to the responsibility of the NERC to promote the generation of electricity in Nigeria. [2]

Transmission

The next phase of getting power to the consumer is Transmission. This is where the masts with three heavy-duty wires you see running across statelines when you are travelling come in. They are called Transmission towers. During the transmission phase, the bulk electricity generated at power plants is carried over long distances by these transmission lines to where it’s needed. In Nigeria, this high-voltage job is handled by the Transmission Company of Nigeria (TCN), a government-owned utility tasked with running our national grid. TCN steps the voltage up to 330 kV for the main highways of power, then down to 132 kV or 33 kV at various substations, so it can safely move closer to towns and cities. Along the way, they monitor grid stability, manage switches and circuit breakers, and respond quickly if there’s a fault or line break. All of this happens under the watchful eye of the Nigerian Electricity Regulatory Commission (NERC), which sets the rules to ensure the grid stays reliable and fair for everyone. In the Phase, the NERC also issues licenses to bodies involved in transmission, in line with Sections 66 and 67 of the Electricity Act of 2023. The activities in this phase are set up into two. The building, maintaining, and operating the transmission grid (the provision of the physical infrastructure) is handled by the unit of the TCN called Transmission Service Provider (TSP) while the Nigerian Independent System Operators (NISO) also a unit of the TCN handles the day-to-day operation of the grid and the electricity market which includes dispatching electricity from generators and ensuring the grid's stability.[3] It is worth noting that the licenses here, both that of provision of a transmission network and day-to-day management of an existing transmission network, can also be issued to private investors to handle, in line with the new provisions as seen in the Electricity Act 2023.

Distribution

When the Electricity arrives at the Substations in various towns and cities in the country. It’s ready for the next phase, the distribution phase. This phase is handled by entities called Distribution companies (DISCos). In Nigeria, we currently have 11 distribution companies, which are Abuja Distribution Company, Eko Distribution Company, Enugu Distribution Company, Ibadan Distribution Company, Ikeja Distribution Company, Jos Distribution Company, Kaduna Distribution Company, Kano Distribution Company, Port Harcourt Distribution Company, and Yola Distribution Company. Each of these Distribution Companies is tasked with managing the further delivery of electricity to locations (usually the state in which the distribution company is located and neighbouring states) allocated to them at lower voltages.

So here is what happens, in the distribution phase, the slightly lower-voltage power coming from transmission substations (usually around 33 kV) is handed off to one of Nigeria’s Distribution Companies (DisCo's), the businesses that actually deliver electricity to your street and home. After the handover, the power is stepped down again (to 11 kV, then 415 V, and finally to the 240 V sockets you plug into) by a network of local transformers and poles.

In this phase, we also have the metering and billing of consumers. Metering and billing are a huge part of a DisCo’s job. The DisCo's are the ones who come to your home at the end of the month to check your meter reading and hand you a bill or install a prepaid meter so that way, you are billed automatically for the energy you consume. Behind the scenes here as well, NERC sets the rules DisCos must follow on service quality, customer complaints, and tariff structures.[4] Under NERC’s Customer Service Standards, DisCos have targets for how quickly they must resolve billing queries or restore supply after a fault.

Consumption

What’s next in the process? Well, that’s you.

Let’s talk about you.

You are ordinarily and in the right sense a consumer in the process, but when we look at you from the lense of policy, you are seen as a type of consumer and classified under Tariff Class Descriptions, such as Residential, Industrial, Commercial, Special and Street Lighting, depending on the use of your property. With these Class Descriptions, a consumer is further classified under several bands within a Class Description. The Bands run from A - E. Band A has the highest level of service with a minimum of 20 Hours of electricity supply daily, and Band E with a Minimum of 4 Hours daily. The Bands are usually divided via location using urban and rural associations, so a very urban area with high consumption and need rate would be classified within Bands A and B, while a rural area would fall under Bands D and E. This is to allow for the effective use of the limited supply of electricity coming in from the Generation Companies. Band A consumers who enjoy a better and more effective electricity service delivery would, of course, have higher tariff rates than Band E consumers.

Rights of an Electricity Consumer

Rights follow consumption, so where you are a consumer of electricity in Nigeria, you have rights that have been granted to you on your use of the electricity and reciprocating obligations from the participants that are involved in bringing electricity to your doorstep, particularly the Distribution Companies.   

1. Right to Safe and Reliable Service

You have the right to receive electricity that’s installed and delivered without putting you or your property in danger. That means DisCos must fit equipment safely and keep it in good shape so your home and family stay protected.

2. Right to Clear Information

You should always know what’s happening with your electricity, whether it’s new rules, planned outages, rate changes, or any service updates. DisCos must keep you informed so you’re never left in the dark.

3. Right to a Working Meter

No matter who you are, you deserve a properly installed and functioning meter. DisCos can’t play favorites; they must meter every customer fairly, so you’re billed only for what you actually use.

4. Right to Fair Estimated Billing

If you don’t yet have a meter, your bill must follow NERC’s official estimated-billing method—not just some made-up “transformer reading.” Estimates should be based on how much electricity your home usually uses.

5. Right to Transparent Billing

Prepaid customers pay only for the units they load. Postpaid customers pay for exactly what shows on their meter. Unmetered customers get reasonable estimates. No hidden fees, no guessing games.

6. Right to Contest Your Bill

Think your invoice is too high? You can ask for a review. DisCos must look into it and explain any charges you’re not sure about.

7. Right to Pay Only Undisputed Charges

While you’re disputing a bill, you don’t have to pay the questionable amount. Just cover the last bill everyone agreed on until your complaint is sorted out.

8. Right to a Refund for Over-billing

If it turns out you paid too much, the DisCo must credit your account or refund the extra. They usually add it to your next bill, so you get back what’s yours.

9. Right to Advance Notice of Disconnection

Your power can’t be cut off without a written warning. If a DisCo disconnects you without letting you know in writing first, they can be fined ₦1,000 for each day the lights stay off.

10. Right to a Fast Complaint Response

Any problem you report, whether a billing issue or a safety concern, must be investigated within 15 working days (unless it truly needs more time).

11. Right to Take Unresolved Complaints to NERC Forums

If your DisCo doesn’t fix your issue, you can bring your case to a local NERC Forum Office. They’re there to help settle disputes between you and the DisCo.

12. Right to Let DisCos Handle Equipment Costs

Transformers, poles, cables, and other grid gear are the DisCo’s responsibility. You or your community shouldn’t have to buy, fix, or replace them unless you choose to invest and fully understand the rules.

On your part as the Consumer, there are certain obligations you are to keep to ensure a continued and effective electricity supply to your residence. These obligations are;

1. Pay bills for electricity consumed within the stipulated time frame

2. Provide requirements for connection as stipulated by NERC and DisCo

3. Vigilant protection of electrical installations

4. Show Cordiality towards electricity workers

5. Customer compliance with the requirements of the Distribution code

6. Ensure receipt of monthly electricity bills if not on prepaid meters and lodge a complaint to the DisCo serving you should you not get your bills.

7. Ensure that metering and other electrical equipment within your premises, belonging to the DisCo not tampered with or bypassed.

8. Notify the DisCo serving you of any tampering or bypass of electricity installations.

9. Notify the DisCo serving you of any outstanding electricity bill before moving into new premises.

Conclusion

The Journey of Electricity from power plants through the national grid and into your home isn’t magic, but a carefully regulated process built on technology and law. Now that you know how generation, transmission, and distribution work, and the rights and responsibilities that protect you, it’s time to put that knowledge to use. Check your latest bill, familiarize yourself with your DisCo’s customer charter, and reach out if something doesn’t add up. After all, informed consumers help keep the lights on for everyone.

Footnotes

1. KPMG, Guide to the Nigerian Power Sector - https://assets.kpmg.com/content/dam/kpmg/za/pdf/Guide-to-the-Nigerian-Power-Sector.pdf

2. Supra

3. Order on the Establishment of the Independent System Operator dated 30th April 2024. 

4. ELIGIBLE CUSTOMER REGULATIONS 2024; REGULATION NO. NERC-R-001-2024