The Nigerian Electricity Regulatory Commission (NERC) has directed owners of private transmission substations connected to the national grid to secure regulatory permits within 45 days or face sanctions. The order, numbered NERC/2026/013, took effect on March 9, 2026 .
The directive establishes a new framework requiring operators of privately owned transmission substations that serve bulk electricity customers to obtain an Independent Electricity Transmission Network Operator permit. Existing operators must apply for the permit within 45 days, while new operators need approval before connecting to the grid .
NERC announced the measure through a public notice on its verified X handle on Wednesday. The commission stated the order aims to strengthen oversight of privately owned infrastructure connected to Nigeria's power network .
The decision follows multiple transmission line trips reported by the Nigerian Independent System Operator. These incidents raised concerns about grid safety and the visibility of privately operated assets on the network .
Under the order, the system operator must compile and submit to NERC a complete list of all existing Private Transmission Substation Owners within five days. NISO must also inform these operators about the new regulatory requirements .
The system operator will deploy Internet of Things-based metering systems at substation interconnection points within 120 days. This technology enables real-time monitoring of electricity flows across the network .
Operators must submit monthly operational reports to NISO. The system operator will conduct inspections of the facilities to verify compliance with regulatory standards .
NERC warned that failure to comply with the directive will attract regulatory sanctions. The commission said the order is designed to improve grid stability and ensure full compliance with the Grid Code in the Nigerian Electricity Supply Industry .
The move represents an expansion of regulatory oversight over privately owned transmission assets. Nigeria's electricity market features multiple players across generation, transmission, and distribution segments .
Generation and distribution companies were privatised in 2013. The Transmission Company of Nigeria remains government-owned and manages the bulk movement of electricity from power plants to distribution networks nationwide .
The new permit requirement applies specifically to private transmission substations used by bulk electricity consumers. These facilities connect directly to the national grid and play a role in delivering power to large industrial and commercial customers .
The order comes amid broader regulatory actions by NERC. The commission recently directed electricity distribution companies to refund N20.33 billion to customers who obtained meters under the Meter Asset Provider scheme .
That directive, issued March 1, requires DisCos to complete reimbursements within 12 months. NERC said the measure aims to streamline the refund process and rebuild consumer confidence in the power sector .
Industry observers note the new substation permit regime could improve coordination between private infrastructure operators and grid managers. The enhanced monitoring may reduce operational disruptions across the national transmission network .