NERC issues 194 electricity licences in 2025 as mini-grids and metering surge

The Nigerian Electricity Regulatory Commission (NERC) issued 194 licences, permits and certifications across Nigeria's electricity market in 2025, a 15.5% increase from the 168 approvals recorded in 2024. The regulator disclosed this in its 2025 Annual Report, with approvals spanning generation, distribution, trading, mini-grids and metering.

The jump reflects continued regulatory activity across both conventional and decentralised electricity segments, especially mini-grid development and metering.

What the report says

Mini-grid permits accounted for the largest number of approvals in 2025, with NERC issuing 64 permits. Meter Service Providers received 43 approvals, while Meter Asset Providers accounted for 30. Captive power projects received 31 licences.

NERC also issued seven licences for electricity distribution networks (IEDN), six off-grid generation licences, five embedded generation licences and six trading licences. Two on-grid generation licences were issued during the year.

Approvals were heavily concentrated in distributed generation and metering. Mini-grids, captive power and metering-related permits accounted for 168 of the 194 approvals.

In 2024, NERC issued 168 licences, permits and registrations. Those included 22 off-grid generation licences, 39 Meter Asset Provider (MAP) permits, 36 Meter Service Provider permits, 27 mini-grid permits and 24 captive power licences. NERC also issued nine trading licences, seven mini-grid registrations, three on-grid generation licences and one System Operator licence.

The composition changed significantly in 2025, with substantially more mini-grid permits and continued strong approvals for meter providers.

Policy push and industry moves

In April, NERC issued the Mini-Grid Regulations 2026 aimed at improving electricity access across Nigeria, particularly in underserved and unserved communities. In December, the Rural Electrification Agency (REA) said it deployed more than 200 mini-grids across underserved communities nationwide in 2025.

President Bola Tinubu recently approved a N3.3 trillion payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme.

The federal government will spend N100 billion in 2026 to deploy hybrid mini-grids for government agencies within and outside Abuja. In March 2025, REA received approval to establish a renewable asset management company to sustain its electrification interventions.

Also in March, the African Development Bank (AfDB) approved a $5.65 million grant to fund Peace Renewable Energy Certificate (P-REC) mini-grid projects across 14 African countries, aiming to provide electricity to 856,000 people. Nigeria and a United Nations agency set a $500 million target for a fund for local renewable energy developers.

What it means for Nigerian businesses

The surge in mini-grid and metering licences points to a slow but steady shift toward decentralised power. For businesses and households tired of grid failures, more licensed mini-grid operators and meter providers could mean more options and better visibility on consumption. But the real test is delivery, not just permits.