The Legal and Institutional Framework for Renewable Energy Infrastructure Development in Nigeria: Assessing the Challenges and Strategies

Abstract

A well-established legal and institutional framework is essential for stability, predictability, protection of rights, dispute resolution, international cooperation, favourable business environment, innovation and ultimate economic growth. This paper interrogates various policies, legal regulations and regulatory bodies that constitute the country’s legal and institutional infrastructure on renewable energy, including the Energy Commission Act (ECA) Cap E10 LFN 2004, the Petroleum Industry Act 2021, the Electricity Act 2023, National Renewable Energy and Energy Efficiency Policy (NREEEP) 2015, the Federal Ministry of Power (FMP), Energy Commission of Nigeria (ECN), Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA) and National Hydroelectric Power Producing Areas Commission (N-HYPPADEC) and so on. The paper uses the doctrinal methodology to assess these legal and institutional frameworks. The study finds that the landscape is challenged by overlapping institutional and regulatory regimes and inadequate sectoral budgetary allocations. As a way of redress, the paper recommends among other things, the establishment of effective and efficient policy frameworks, an independent and specific legislative framework, reduction of the number of regulatory bodies, adequate budget allocation and specialized banks.