New regulations to accerelate rural electrification, says NERC

By Onu Okorie

The many Electricity unserved or underserved Nigerian rural dwellers has something to cheer, going by the new Mini-Grid Regulations 2026 issued by the Nigerian Electricity Regulatory Commission NERC. According to NERC the new regulatory framework is designed to accelerate rural electrification, attract private sector investment and ensure consumer protection within Nigeria’s power sector. It would be recalled that the Rural Electrification Agency REA estimated that almost 90 million people in Nigeria do not have access to grid electricity and the millions of those connected to the grid have less than 12 hours of electricity every day. 

The energy poverty issue in Nigeria has put many Nigerians, especially in the rural areas, at a high risk of relying on hazardous and polluting sources of lighting such as candles and kerosene lanterns. Lack of access to energy or electricity is directly related the economic hardship, food crises, health concerns and perpetuation of the poverty cycle. However, in a public notice issued on Monday, titled Mini-Grid Regulations 2026 and numbered NERC-R-001-2026, the regulation provides guidelines for the development, operation and oversight of mini-grids, particularly in unserved and underserved communities. Acccording to the NERC the new regulatory guidelines for mini-grid electricity systems aimed at expanding power access across the country, the regulation applies to both isolated and interconnected mini-grids. The regulation also capped isolated mini-grids which operate independently of distribution companies at 5 megawatts, while interconnected mini-grids, which operate alongside existing distribution network can operate up to 10 megawatts. NERC stated that the framework covers developers, operators, distribution companies and host communities, while also aligning with provisions of the Electricity Act 2023 and accommodating state-level electricity regulations. Under the new rules, mini-grids with capacities below 100 kilowatts can be registered, while those above that threshold are required to obtain permits from the commission. The commission said it would process permit applications within 30 business days. The regulation also introduces reporting obligations, requiring operators of mini-grids below one megawatt to submit annual reports, while those above one megawatt must file quarterly reports. NERC added that it would carry out continuous monitoring of mini-grid operations and may publish relevant data to enhance transparency in the sector. The commission noted that the framework is expected to strengthen coordination between mini-grid developers and electricity distribution companies, while ensuring fair tariffs and safeguarding the interests of consumers. The move is part of broader efforts to improve electricity access and reliability across Nigeria, particularly in rural and off-grid communities.