The Nigerian Electricity Regulatory Commission (NERC) has issued the Mini-Grid Regulations 2026 aimed at improving electricity access across Nigeria, particularly in underserved and unserved communities.
The commission disclosed this in a statement shared on its official X platform on Monday.
The new regulation provides a comprehensive framework for the development, operation, and oversight of mini-grids, with a focus on attracting investment and ensuring consumer protection.
The regulation, titled NERC-R-001-2026, aligns with the Electricity Act 2023 and introduces clear guidelines for stakeholders across the mini-grid value chain.
- “The regulation aims to accelerate rural electrification, attract private investment, ensure fair tariffs and consumer protection, as well as promote coordination between mini-grid developers and DisCos,” the regulator noted.
What the regulator is saying
NERC said the new framework is designed to accelerate rural electrification while ensuring transparency and fairness in the sector.
- The regulation applies to isolated mini-grids operating independently of distribution companies, up to 5 megawatts.
- It also covers interconnected mini-grids linked to existing distribution networks, up to 10 megawatts.
- The framework applies to developers, operators, distribution companies, and host communities.
- Mini-grids below 100 kilowatts can be registered, while those above 100 kilowatts require a permit from NERC.
The commission noted that permits will be issued within 30 business days through a structured application process.
Get up to speed
Nigeria has faced persistent challenges in expanding electricity access, particularly in rural and off-grid areas.
- Many communities remain unconnected to the national grid due to infrastructure gaps.
- Mini-grids have emerged as a viable solution to bridge the electricity access deficit.
- Previous policies have encouraged private sector participation in off-grid power development.
The new regulation builds on these efforts by providing clearer rules and stronger regulatory oversight.
More Insights
The Mini-Grid Regulations 2026 introduce new compliance and reporting requirements for operators.
- Operators of mini-grids below 1 megawatt are required to submit annual reports.
- Those operating above 1 megawatt must submit quarterly reports to NERC.
- The commission will conduct ongoing monitoring and may publish sector performance data.
- The regulation promotes coordination between mini-grid developers and distribution companies.
These measures are expected to improve transparency and operational efficiency in the sector.
What you should know
Earlier, Nairametrics reported that the NERC had issued a new directive introducing stricter monitoring and transparency requirements for Nigeria’s power transmission system.
- The directive, contained in Order No. NERC/2026/026 sets out new compliance measures aimed at reducing transmission losses and improving accountability across the electricity value chain.
- The order comes as fresh data from the Nigerian Independent System Operator (NISO) shows that transmission losses declined from 8.71% in 2024 to 7.24% in 2025.
- President Bola Tinubu recently approved a N3.3 trillion payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme.
The presidency said the liabilities, accumulated between February 2015 and March 2025, were reviewed and verified before arriving at the final settlement figure.
