The Nigerian Electricity Regulatory Commission (NERC) has ordered mini-grid permit holders to construct, operate, and/or maintain its distribution network in accordance with the relevant technical codes and standards.
This forms part of the comprehensive Mini-grid regulations 2026 released by NERC to ensure sustainability and efficiency of mini-grid operations nationwide. The regulation was signed by the Commission’s Chairman, Dr. Musiliu Oseni.
The regulation specifically detailed Determination of Tariffs and Other Charges, Classification and Delineation of Mini-Grid, Registration, Permit, and Mandatory Conditions; Technical, Operational, and Transitional Requirements for Mini-Grids; and Tariffs and Commercial Arrangements, among others.
The regulation provides general obligations of the mini-grid permit holder which include strict compliance with “the Act, terms and conditions of the mini-grid permit, the Tripartite Agreement, the agreement with the community or connected community as applicable, customer contract, the rules and regulations, as well as the decisions, orders, and directions of the Commission.”
Further includes that the mini-grid permit holder shall comply with all other regulations issued by the Commission from time to time.
Above all, “The mini-grid permit holder shall grant the Commission and its duly authorised representatives’ access to its sites and provide any information requested by the Commission.”
In respect of transparency in financial transactions, the Regulation provides that the Mini-Grid Permit Holder shall: maintain separate accounting records for the mini-grid business, including the business of utilising the assets of a Distribution licensee’s network, in the prescribed form and contain such particulars as may be specified by the Commission and in accordance with the Companies and Allied Mailers Act; prepare accounting statements for each financial year comprising a profit and loss account and a balance sheet; and ensure that the accounting statements prepared are duly certified by an independent auditor in respect of each financial year, stating whether in the opinion of the auditor, the statement has been properly prepared and giving a true and fair view of the revenue, costs, assets, liabilities and reserves reasonably attributable to the business to which the statement relates.
Also, for inspection of Accounts for Tariff Review and Determination of Depreciated Value, NERC provided that any person authorised by it shall be entitled to inspect and verify the accounts of a mini-grid permit holder at any reasonable time, and the mini-grid permit holder shall be under an obligation to render all necessary assistance and provide the required documents to the person authorised to inspect the accounts.
According to the Commission, “The mini-grid permit holder shall provide reports in the form prescribed in Schedule 4 of these Regulations to the Commission for each mini-grid or a combined report for a portfolio of mini-grids at least once every year, except where a different frequency is prescribed by the Commission.
“Where, following an inspection of accounts, the Commission proves that the actual costs incurred by the mini-grid permit holder exceed the approved range of benchmark costs in the tariff model or the actual revenues earned by the mini-grid permit holder deviate from the revenues stated when the application was filed”, the following shall be adopted.
These include that the input parameters for tariff calculation using the mini-grid tariff model shall be adjusted to the actual values; and the tariffs, as well as the calculation of the depreciated value, shall be adjusted and approved by the Commission accordingly.
It however provided that the new tariffs, as adjusted in section 14(3) of these Regulations, shall be applied within 30 business days of approval by the Commission.
To further ensure the quality of service, NERC provided that every mini-grid permit holder shall provide electricity service in accordance with these Regulations, the applicable permit, the applicable customer contract, and any minimum technical and service standards prescribed by the Commission.
It further states: “Every mini-grid permit holder shall prepare, maintain, and make publicly available to its customers a customer service charter stating, at a minimum: billing frequency and payment channels; the treatment of meter failure, missing meter data, and estimated billing;
Regarding distribution licensee connection and reconnection rights and procedures: complaint channels and escalation procedures; planned and forced outage communication arrangements; and service-restoration expectations applicable to the site.
