Power generation in Nigeria dates again to 1886 while two (2) producing units have been installed to serve the then Colony of Lagos. By an Act of Parliament in 1951, the Electricity Corporation of Nigeria (ECN) became set up, and in 1962, the Niger Dams Authority (NDA) become additionally hooked up for the development of hydroelectric strength. A merger of the two (2) enterprises in 1972 resulted inside the formation of the National Electric Power Authority (NEPA) which changed into saddled with the duty of generating, transmitting and dispensing energy for the complete us of a. In 2005, because of the power quarter reform method, NEPA was unbundled and renamed Power Holding Company of Nigeria (PHCN).

The Electric Power Sector Reform (EPSR) Act changed into signed into law in March 2005, permitting personal businesses to take part in power generation, transmission, and distribution. The government unbundled PHCN into 11 power distribution companies (DisCos), six generating businesses (GenCos), and a transmission corporation (TCN). The Act also created the Nigerian Electricity Regulatory Commission (NERC) as an impartial regulator for the arena.