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Introduction
The Nigerian Power Sector continued to witness significant regulatory, institutional, and market developments during the first half of 2026. Despite these developments, the Sector continues to grapple with longstanding structural challenges that undermine its operational efficiency and financial sustainability. As highlighted in our 2025 End-of-Year Nigeria Power Sector Report, the persistent liquidity crisis driven by weak market discipline and longstanding payment shortfalls remains the Sector’s most pressing challenge, with far-reaching implications across the value chain.
In this 2026 Mid-Year Nigeria Power Sector Report, we examine the performance of the Nigerian Electricity Supply Industry (“NESI“) during the first half of the year, highlight key legal, regulatory, and market developments, assess emerging trends in State electricity market reforms and energy transition, and outline key expectations for the second half of 2026.
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