NERC directs private substations to get national grid permits

The Nigerian Electricity Regulatory Commission (NERC) has directed owners of private transmission substations connected to Nigeria’s national grid to obtain regulatory permits within 45 days.

The directive is contained in Order No. NERC/2026/013, which took effect on March 9, 2026, and is aimed at strengthening oversight of privately owned substations operating within the country’s electricity network.

The commission disclosed the development in a public notice shared through its official X account.

New permit requirement for private substations

According to NERC, the order establishes a regulatory framework requiring private transmission substation owners that supply electricity to bulk consumers to obtain an Independent Electricity Transmission Network Operator permit before operating or connecting to the national grid.

The regulator said the measure was introduced to improve grid reliability, safety, and operational visibility across the electricity network.

The decision follows concerns over frequent transmission line trips reported by the Nigerian Independent System Operator (NISO), which manages the operational stability of the grid.

Under the directive, NISO is required to submit a comprehensive list of all existing private transmission substation owners to NERC and notify them of the provisions of the new order within five days.

Existing operators must apply for the permit within 45 days, while new operators must secure approval before connecting their facilities to the grid.

The commission warned that failure to comply with the directive could attract regulatory sanctions.

Monitoring and compliance measures introduced

As part of the new framework, NISO will deploy Internet of Things-based metering systems at substation interconnection points within 120 days.

Operators will also be required to submit monthly operational reports, while periodic inspections will be conducted to ensure compliance with industry regulations.

NERC said the order is designed to strengthen grid stability and ensure adherence to the grid code within the Nigerian Electricity Supply Industry.

Wider regulatory actions in the power sector

The directive comes amid broader regulatory actions by NERC aimed at improving transparency and accountability in the electricity sector.

Recently, the commission ordered electricity distribution companies to reimburse customers about N20.33 billion for meters purchased under the Meter Asset Provider framework.

The order requires that the outstanding amount be refunded to affected customers within 12 months starting from March 1, 2026.

Nigeria’s electricity industry operates through a network of generation companies that produce electricity, transmission infrastructure that moves power across the country, and distribution companies responsible for delivering electricity to consumers.

The sector underwent major restructuring in 2013 when the federal government privatised power generation and distribution companies while retaining control of transmission through the Transmission Company of Nigeria.

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