In September 2013, the Nigerian Electricity Supply Industry (NESI) was privatised. Six generation companies (GENCOS) and 11 distribution companies (DISCOS) were sold to investors who acquired a minimum of 60% of the shares of each company. Some of the stated goals of the privatisation programme are that the privatised entities would develop and improve electricity infrastructure in the country, increase generation capacity and improve power supply to end users. To ensure that the goals are achieved, the Nigerian Electricity Regulatory Commission (NERC) developed the Multi-Year Tariff Order (MYTO), a tariff system that is designed to be both cost reflective and to reward an efficient operator.
