The Nigerian Electricity Regulatory Commission (NERC) on Monday, April 13, issued the mini-grid regulations 2026 to guide the development, operation, and regulation of mini-grid systems across Nigeria.
In a statement, the commission said the regulation is aimed at expanding electricity access, particularly in unserved and underserved communities, while ensuring safety, fair tariffs, and protection for investors in the sector.
The framework also strengthens coordination between mini-grid developers, operators, distribution companies, and host communities in line with the Electricity Act 2023.
The new guidelines apply to isolated mini-grids that operate independently of Distribution Companies (DisCos) and have capacities of up to 5MW.
These interconnected mini-grids are connected to existing distribution networks, with capacities of up to 10MW.
Mini-grids below 100kW are required to be registered, while those above 100kW must obtain a permit from NERC.
“NERC grants permits through an application process within 30 business days,” NERC said.
“Operators must submit annual reports for mini-grids below 1MW, and quarterly reports for those above 1MW. NERC conducts ongoing monitoring and may publish sector data.”
The commission has also issued an order to improve transparency and efficiency in Nigeria’s power grid through enhanced reporting of the regional transmission loss factor.
According to NERC, the directive establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
“Data from the Nigerian Independent System Operator (NISO) indicate that the national average TLF was 8.71% in 2024 but was reduced to 7.24% in 2025. However, this still exceeds the 7% benchmark approved by NERC in the Multi-Year Tariff Order (MYTO),” the statement said.
“Taking effect from 13 April 2026, the Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.”
Under the new framework, NISO is required to install smart meters at all regional interconnection points by December 2026 to enable accurate measurement of energy flows across the transmission network.
The system operator will also measure and document energy flows through power transformers at transmission substations and submit quarterly TLF reports to NERC on a regional basis.
In addition, TCN has been directed to submit, by July 2026, a comprehensive action plan outlining measures to reduce transmission losses to within the approved 7 percent benchmark.
“TCN to ensure that TLF across transmission regions shall not exceed 6.5% by December 2026,” the commission said.
NERC said the order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting.
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