The Nigerian Electricity Regulatory Commission (NERC) issued a total of 194 licences, permits and certifications across Nigeria’s electricity market in 2025, representing a 15.5 per cent increase over the 168 approvals granted in 2024.
The development, according to NERC’s 2025 Annual Report, reflects increased regulatory activity across the electricity value chain, particularly in mini-grid development, distributed generation and metering.
Mini-grid permits accounted for the largest category of approvals during the year, with 64 permits issued by the regulator. This was followed by 43 approvals for Meter Service Providers and 30 permits for Meter Asset Providers.
NERC also issued 31 licences for captive power projects, seven licences for electricity distribution networks, six off-grid generation licences, five embedded generation licences and six electricity trading licences. Two on-grid generation licences were also issued during the year.
The figures indicate a growing emphasis on decentralised electricity solutions, with mini-grids, captive power and metering-related approvals accounting for 168 of the 194 licences, permits and certifications issued in 2025.
The 2025 approval profile also marked a significant shift from the previous year. In 2024, NERC issued 22 off-grid generation licences, 39 Meter Asset Provider permits, 36 Meter Service Provider permits, 27 mini-grid permits and 24 captive power licences.
The commission also issued nine trading licences, seven mini-grid registrations, three on-grid generation licences and one System Operator licence in 2024.
The increased regulatory attention to mini-grids comes amid renewed efforts by the Federal Government and development partners to expand electricity access to communities poorly served by the national grid.
NERC introduced the Mini-Grid Regulations 2026 in April as part of measures aimed at strengthening the regulatory framework for mini-grid development and improving electricity access, particularly in underserved and unserved communities.
Similarly, the Rural Electrification Agency (REA) disclosed in December that it had deployed more than 200 mini-grids across underserved communities nationwide in 2025.
The Federal Government has also approved a N3.3 trillion payment plan to settle outstanding liabilities under the Presidential Power Sector Financial Reforms Programme, in a move aimed at addressing financial constraints within the electricity sector.
In addition, the government plans to spend N100 billion in 2026 on the deployment of hybrid mini-grids to power government agencies within and outside Abuja.
Earlier in March 2025, REA received approval to establish a renewable asset management company designed to sustain and manage its electrification interventions.
Development financing is also supporting the expansion of decentralised renewable power. The African Development Bank approved a $5.65 million grant in March to support Peace Renewable Energy Certificate (P-REC) mini-grid projects across 14 African countries, with the programme expected to provide electricity access to about 856,000 people.
Nigeria has also set a $500 million target, in partnership with a United Nations agency, for a fund aimed at supporting local renewable energy developers.
Energy analysts say the continued rise in mini-grid and metering approvals points to a gradual shift in Nigeria’s electricity market towards decentralised power solutions.
For households and businesses facing persistent grid supply challenges, the expansion of licensed mini-grid operators could provide alternative sources of electricity, while increased participation by metering companies could improve access to meters and strengthen transparency in electricity consumption and billing.
The trend, however, also underscores the need for sustained investment, effective regulation and stronger coordination among NERC, REA, distribution companies, state governments and private-sector operators to ensure that the growing number of licences translates into actual improvements in electricity access and reliability.
