Precious Anga
Lagos — Nigeria’s electricity sector has received a major boost following the introduction of the Nigerian Electricity Regulatory Commission (NERC) Net Billing Regulations 2026, with energy experts describing the policy as a significant step towards expanding renewable energy adoption, lowering electricity costs and strengthening the country’s long-term energy security.
The regulation, introduced in June under the Electricity Act, allows eligible electricity consumers to generate renewable energy for personal use and earn credits for excess electricity supplied to distribution companies (DisCos). The framework also supports the ongoing decentralisation of electricity regulation, giving states greater oversight of their electricity markets.
Under the new rules, customers can install renewable energy systems with capacities ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp). Participants must connect to a DisCo’s network, install approved renewable energy systems, obtain the utility’s approval, sign a Net Billing Agreement and register with NERC. Successful applicants will also receive bidirectional smart meters to measure electricity imported from and exported to the national grid, with exported electricity attracting credits based on NERC-approved tariffs.
Chairman of the Eko Electricity Distribution Company Customer Consultative Forum for Festac and Satellite Town, Dr Olukayode Akinrolabu, described the regulation as a transformative policy capable of reshaping Nigeria’s electricity landscape.
“It provides a hedge against high tariffs and unreliable supply while creating a new revenue stream for consumers,” he said.
Akinrolabu explained that the regulation adopts a net billing model rather than net metering, allowing consumers to prioritise self-generated electricity while receiving credits for excess power supplied to the grid. He added that wider adoption of rooftop solar systems would reduce technical losses, ease pressure on distribution transformers and improve electricity availability during peak daytime demand.
He, however, noted that the policy’s success would depend on stronger distribution infrastructure, effective regulatory enforcement and the widespread deployment of certified bidirectional smart meters. While DisCos could initially record lower energy sales from large customers and incur additional infrastructure costs, he said the regulation would ultimately help retain customers on the grid while creating fresh opportunities in renewable energy services.
Chief Executive Officer of Wurvicat International Ltd, Atinuke Owolabi, also described the regulation as one of the most important reforms introduced in Nigeria’s power sector in recent years.
“This is one of the most progressive policies introduced in recent years because it transforms consumers into active participants in Nigeria’s electricity market,” she said.
Owolabi said transparent compensation mechanisms, accurate smart metering and uniform technical standards would encourage wider participation and strengthen public confidence in the scheme. She added that improved grid infrastructure and an efficient dispute resolution system would be critical to the successful implementation of the regulation.
According to her, the policy aligns with Nigeria’s Energy Transition Plan by promoting cleaner energy, expanding electricity access and supporting the country’s decarbonisation goals. She also said successful implementation could stimulate local manufacturing of solar panels, batteries, inverters and other renewable energy technologies, creating thousands of jobs, reducing dependence on imported components and deepening Nigeria’s renewable energy value chain.
