Regulatory Frameworks for Renewable Energy Investment in Nigeria: A Professional Assessment

Nigeria's renewable energy sector has attracted increasing private investment interest, yet the regulatory environment governing project development, grid connection, power purchase agreements, and off-grid licensing remains complex and inconsistently applied, creating barriers to investment scale-up. This study provides a professional assessment of Nigeria's regulatory frameworks relevant to renewable energy investment, evaluating the Electricity Act 2023, Rural Electrification Agency licensing regulations, Nigerian Electricity Regulatory Commission order frameworks, and state-level energy laws. Primary data were gathered through semi-structured interviews with 18 renewable energy investors, legal practitioners, and regulatory officials to assess practical implementation gaps between regulatory intent and investor experience. A regulatory quality scoring instrument adapted from international energy governance frameworks is applied to evaluate transparency, consistency, enforcement, and investor protection dimensions. Findings reveal that while recent legislative reforms have substantially improved the statutory framework, implementation bottlenecks persist in grid connection approvals, power purchase agreement dispute resolution, and the lack of standardised state-level permitting processes. The study benchmarks Nigeria's regulatory environment against Ghana, Kenya, and South Africa and identifies priority reform areas. Recommendations address the need for a single investor-facing regulatory portal, accelerated grid connection standards, and standardised bankable power purchase agreement templates to reduce transaction costs for renewable energy project developers. Keywords: renewable energy regulation, Nigeria, investment framework, Electricity Act, power purchase agreement.