NERC Orders Registration of Private Substations Connected to Nigeria’s Power Grid

NERC Orders Registration of Private Substations Connected to Nigeria’s Power Grid

  • The NERC has issued a new order regulating private transmission substations connected to the national grid
  • The directive requires operators to obtain an Independent Electricity Transmission Network Operator permit
  • The Nigerian Independent System Operator will install IoT-based metering systems and conduct inspections

Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.

The Nigerian Electricity Regulatory Commission (NERC) has introduced a new directive requiring owners of privately operated transmission substations connected to Nigeria’s national grid to formally register and obtain regulatory approval.

The Nigerian Electricity Regulatory Commission (NERC) has introduced a new directive requiring owners of privately operated transmission substations connected to Nigeria’s national grid to formally register and obtain regulatory approval.
Existing substation owners have 45 days to apply for the permit under the new framework. Photo: Pius Utomi Ekpei, @aonanuga1956.
Source: UGC

The directive, which was published by the commission on Wednesday, March 11, was titled: Order on the Registration and Authorisation of Grid-Connected Private Transmission Substations (NERC/2026/013).

New directive for effective oversight of substations

According to the commission, the directive took effect on March 9, 2026. It is aimed at strengthening oversight of privately owned substations that supply electricity directly to large power consumers.

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NERC explained that the order creates a regulatory framework mandating owners of such facilities to obtain an Independent Electricity Transmission Network Operator (IETNO) permit before operating or linking their infrastructure to the national grid.

The regulator said the policy was introduced in response to operational concerns within the power network.

NISO reports recurring line trips

The Nigerian Independent System Operator (NISO) had earlier reported recurring transmission line trips associated with some of the privately operated substations.

To implement the directive, NERC directed NISO to compile and submit a comprehensive list of all existing private transmission substation owners across the country.

The system operator is also expected to formally notify these operators of the new requirements within five days.

Under the new framework, companies currently operating such substations must apply to the commission for the required IETNO permit within 45 days.

New substation users must seek approval

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For new projects, NERC stated that operators must secure the permit before connecting their facilities to the grid, warning that failure to comply could attract regulatory sanctions.

The order also introduces additional operational requirements for operators. NISO is expected to install Internet of Things (IoT)-enabled metering systems at substation interconnection points within 120 days to improve monitoring and data visibility across the network.

“Operators must submit monthly operational reports, while NISO will conduct inspections to ensure compliance,” the commission added.

NERC said the measures are intended to improve electricity grid stability, strengthen regulatory oversight, and ensure compliance with the national Grid Code governing Nigeria’s electricity supply industry.

The Nigerian Electricity Regulatory Commission (NERC) has issued the Order on the Registration and Authorisation of Grid-Connected Private Transmission Substations.
The policy aims to improve grid reliability, strengthen oversight of substations.
Source: Getty Images

FG mentions free prepaid meters shared

Legit.ng earlier reported that the federal government disclosed that only about 200,000 smart electricity meters under the $500 million World Bank-backed Distribution Sector Recovery Programme (DISREP) had been shared with Nigerians.

This is in spite of the delivery of hundreds of thousands of meters into the country. The government blamed DisCos for the slow installation of prepaid meters for Nigerians.

The government disclosed the number of smart meters installed under the DISREP programme so far. The DISREP programme aims to install 3.2 million meters over four years at no cost to consumers.

Source: Legit.ng

Authors:
Oluwatobi Odeyinka avatar

Oluwatobi Odeyinka (Business Editor) Oluwatobi Odeyinka is a Business Editor at Legit.ng. He reports on markets, finance, energy, technology, and macroeconomic trends in Nigeria. Before joining Legit.ng, he worked as a Business Reporter at Nairametrics and as a Fact-checker at Ripples Nigeria. His features on energy, culture, and conflict have also appeared in reputable national and international outlets, including Africa Oil+Gas Report, HumAngle, The Republic Journal, The Continent, and the US-based Popula. He is a West African Digital Public Infrastructure (DPI) Journalism Fellow.