- NERC has introduced a new commercial framework for interconnected mini-grids to improve electricity reliability and reduce investor risk.
- The rules clarify pricing, asset use, and legacy debt responsibilities to unlock private sector participation.
Nigeria has taken a major regulatory step to improve electricity reliability and attract private investment. The Nigerian Electricity Regulatory Commission (NERC) has issued new rules for interconnected mini-grids. The document, titled Guidelines on the Commercial Framework for Interconnected Mini-Grids 2025, aims to solve long-standing commercial and operational barriers. NERC released the guidelines in late 2025.
The new rules operate under the Electricity Act 2023. They seek to close Nigeria’s electricity access gap, especially in underserved urban and peri-urban communities. For years, private mini-grid developers struggled to connect to distribution networks operated by DisCos. Uncertainty over pricing, infrastructure use and unpaid consumer bills blocked projects and increased financial risks. The new framework removes these barriers by defining roles, responsibilities and commercial terms for all parties.
Furthermore, a key feature introduces a two-part pricing mechanism. Mini-grid operators will pay DisCos a fixed “Rental Fee” for the use of lines, transformers and other network assets. They will also pay a variable “Cost of Energy,” which reflects the actual electricity supplied. This structure increases transparency and reduces commercial disputes. It also allows both developers and DisCos to recover investments in a predictable way.
The guidelines also address legacy debt in communities targeted for mini-grid deployment. Many consumers owe unpaid electricity bills to DisCos. The new rules provide a structured process to handle these arrears. This prevents developers from inheriting old debts while protecting DisCos’ financial interests and consumer rights.
In addition, the reforms align with wider power sector changes and international support. The framework complements the World Bank-backed Distributed Access through Renewable Energy Scale-up (DARES) project. DARES aims to expand renewable energy and decentralized power solutions and to improve electricity access for millions of Nigerians. The initiative also encourages DisCos to procure part of their supply from renewable sources, strengthening grid resilience and energy sustainability.
Nigeria’s regulatory stance toward mini-grids has shifted. Regulators now view mini-grids as partners rather than competitors to the national grid. Consumers are expected to benefit through more reliable power, clearer billing structures and faster deployment of clean energy solutions across the country.