The Nigerian Electricity Regulatory Commission (NERC) has ordered private transmission substations connected to the national grid to obtain a permit within 45 days as part of efforts to strengthen oversight and improve grid reliability.
The order, designated NERC/2026/013 and effective from March 9, 2026, was communicated in a public notice issued via the commission’s verified X handle on Wednesday.
The directive requires owners of private transmission substations used by bulk electricity consumers to obtain an Independent Electricity Transmission Network Operator Permit before operating or connecting to the grid.
The Nigerian Independent System Operator must submit to NERC a comprehensive list of all existing Private Transmission Substation Owners within five days and notify them of the order’s provisions.
Existing operators must apply for the permit within 45 days, while new operators must obtain the permit before connecting to the grid, with non-compliance attracting regulatory sanctions.
The system operator will deploy IoT-based metering systems at substation interconnection points within 120 days to enhance monitoring capabilities.
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Operators must submit monthly operational reports, and inspections will be conducted to ensure compliance with the Grid Code, according to the commission.
As part of its oversight functions, NERC recently directed all electricity distribution companies to reimburse N20.33 billion to customers for meters procured under the Meter Asset Provider framework.
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The order requires full recovery and disbursement to affected customers within 12 months, starting from March 1, 2026.
Nigeria’s power sector underwent significant transformation in 2013 when the government privatised power generation and distribution companies while retaining control of transmission.
Generation companies operate thermal and hydroelectric plants, supplying electricity to the Transmission Company of Nigeria, the sole government-owned entity responsible for transmitting power across the country.
The grid permit requirement aims to enhance regulatory oversight and stability in the Nigerian Electricity Supply Industry following frequent transmission line trips.
