The Nigerian Electricity Regulatory Commission has issued an order directing the registration and authorisation of privately owned transmission substations connected to the national grid in a move aimed at strengthening regulatory oversight and improving grid reliability.
In a directive titled “Order on the Registration and Authorisation of Grid-Connected Private Transmission Substations (NERC/2026/013),” the commission said the regulation took effect on March 9, 2026.
According to the commission, the order was introduced to ensure closer supervision of privately owned transmission infrastructure linked to Nigeria’s electricity grid.
“The Nigerian Electricity Regulatory Commission has issued the Order on the Registration and Authorisation of Grid-Connected Private Transmission Substations (NERC/2026/013), effective 9 March 2026, to strengthen oversight of privately owned substations connected to Nigeria’s national grid,” the statement read.
NERC explained that the directive establishes a regulatory framework requiring private substation owners supplying bulk electricity consumers to secure authorisation before operating or connecting to the grid.
“The order establishes a regulatory framework requiring 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,” it stated.
The commission said the decision followed concerns over grid stability and frequent system disturbances reported by the Nigerian Independent System Operator.
“The directive was introduced to improve grid reliability, safety, and operational visibility following frequent transmission line trips reported by the Nigerian Independent System Operator,” the statement added.
Under the order, the Nigerian Independent System Operator is mandated to provide the regulator with a list of existing private transmission substation owners and notify them of the new regulatory requirements.
“NISO must submit to NERC a comprehensive list of all existing private transmission substation owners and notify them of the provisions of the order within five days,” the commission stated.
The order further requires existing private substation owners to apply for permits within 45 days. NERC also clarified that new operators would not be allowed to connect to the national grid without first obtaining the required permit.
“New PTSOs must obtain the permit before connecting to the grid, as non-compliance attracts regulatory sanctions,” the order noted.
As part of measures to improve monitoring and operational visibility across the grid, the system operator has been mandated to deploy advanced metering technology at the interconnection points of these facilities. “NISO will deploy IoT-based metering systems at substation interconnection points within 120 days,” it stated.
In addition, operators will be required to provide periodic operational updates, while inspections will be carried out to ensure compliance with the directive. “Operators must submit monthly operational reports, while NISO will conduct inspections to ensure compliance,” the commission said.
NERC noted that the overall objective of the order is to strengthen grid operations and ensure adherence to regulatory standards within the Nigerian Electricity Supply Industry while enhancing grid stability, regulatory oversight, and compliance with the Grid Code.
