Nigerian Electricity Regulatory Commission (NERC) has issued the Mini-Grid Regulations 2026 to drive the development and regulation of decentralised power systems across the country.

The move also aims at tackling Nigeria’s persistent electricity access gap.

The new regulatory instrument, titled NERC-R-001-2026, is designed to accelerate electrification in unserved and underserved communities, while strengthening investor confidence and safeguarding consumer interests within the evolving Nigerian Electricity Supply Industry (NESI).

Under the regulation, NERC establishes clear operational boundaries for mini-grid deployment, applying to isolated systems operating independently of distribution company (DisCo) networks with capacities of up to five megawatts (MW), as well as interconnected mini-grids of up to 10MW that are integrated with existing distribution infrastructure.

According to the commission, the framework covers the full spectrum of stakeholders, including developers, operators, DisCos, and host communities, to ensure coordination and reduce conflicts during project implementation.

In alignment with the provisions of the Electricity Act 2023, the regulation also accommodates state-level electricity markets, reflecting the country’s gradual transition towards a decentralised power sector.

A key provision of the new rules introduces a tiered regulatory approach. While mini-grids below 100 kilowatts (KW) may be registered with the commission, projects exceeding that threshold are required to obtain formal permits. NERC is expected to process such applications within 30 business days, a move aimed at reducing bureaucratic delays and improving the ease of doing business in the sector.

To enhance transparency and oversight, operators are mandated to comply with strict reporting obligations. Mini-grids below one megawatt must submit yearly reports, while those above one megawatt are required to file quarterly reports. The commission will also conduct continuous monitoring and reserves the right to publish industry data to support policy decisions and market development.