Regulator targets wider electricity access, stricter reporting, and improved grid efficiency under Electricity Act 2023…..
The Nigerian Electricity Regulatory Commission has introduced new mini-grid regulations for 2026, setting updated rules for the development, operation, and supervision of mini-grid electricity systems across the country.
In a statement released on Monday, the regulator said the framework is designed to accelerate electricity access, particularly in unserved and underserved communities while ensuring safety standards, fair pricing, and stronger investor protection within the sector.
The new rules also reinforce coordination among mini-grid developers, operators, distribution companies, and host communities, in line with the provisions of the Electricity Act 2023.
Clearer Structure for Mini-Grid Operations
Under the new guidelines, Nigeria’s mini-grid sector is more clearly structured based on capacity and operational model.
- Isolated mini-grids (up to 5MW) will operate independently of distribution companies
- Interconnected mini-grids (up to 10MW) may be linked to existing distribution networks
Projects below 100kW will be required to register with the regulator, while systems above 100kW must obtain formal permits.
NERC said permit applications will be processed within 30 business days, aiming to reduce delays and improve regulatory efficiency.
Operators are also required to comply with structured reporting obligations, including annual submissions for smaller systems and quarterly reports for larger installations. The commission added that it may publish sector performance data as part of its monitoring function.
Push for Transparency and Investor Confidence
The regulator said the updated framework is intended to create a more predictable environment for private investment in distributed power systems, which are increasingly seen as key to expanding electricity access in rural and peri-urban areas.
By standardising approvals and reporting requirements, NERC hopes to reduce regulatory uncertainty and improve accountability across the mini-grid value chain.
New Measures to Cut Transmission Losses
Alongside the mini-grid reforms, the commission also issued a separate directive aimed at improving efficiency in Nigeria’s national electricity transmission network.
The order introduces a formal system for measuring and reporting regional transmission losses across the grid operated by the Transmission Company of Nigeria.
According to data from the Nigerian Independent System Operator, transmission losses stood at 8.71% in 2024 and improved to 7.24% in 2025. However, this still remains above NERC’s approved 7% benchmark under the Multi Year Tariff Order (MYTO) framework.
Smart Metering and Real-Time Monitoring
To address the gap, the new directive effective April 13, 2026 requires the installation of smart meters at all regional interconnection points by December 2026.
These meters are expected to provide real-time tracking of energy flows across the transmission network, improving accuracy in loss measurement and system accountability.
The Nigerian Independent System Operator has also been tasked with documenting energy flows through transmission substations and submitting quarterly regional reports to the regulator.
Strict Targets for Transmission Efficiency
The Transmission Company of Nigeria has been instructed to submit a detailed action plan by July 2026 outlining steps to reduce transmission losses.
More aggressively, the regulator has set a target requiring transmission loss factors across regions to not exceed 6.5% by December 2026.
NERC said the reforms are aimed at strengthening discipline in grid management, improving operational transparency, and enhancing overall electricity sector performance.
Driving a More Efficient Power Sector
By tightening rules around both mini-grids and transmission performance, NERC is pushing a broader reform agenda focused on reliability, accountability, and expanded access.
The commission said the new measures are expected to improve investor confidence in distributed energy systems while also addressing long-standing inefficiencies in the national grid.
Together, the reforms reflect a more assertive regulatory approach as Nigeria seeks to close its electricity access gap and modernise its power infrastructure.
