NERC Launches Net Billing Scheme, Allows Nigerians to Sell Excess Solar Power to DisCos

The Nigerian Electricity Regulatory Commission (NERC ) has officially commenced the Net Billing Regulations 2026, a landmark framework that allows electricity consumers with qualifying solar power systems to generate electricity for their own use and sell any surplus energy back to distribution companies. The commission announced the rollout of the framework on Wednesday, June 3, 2026, describing it as a major step towards expanding renewable energy adoption and improving electricity access across the country. Under the new arrangement, eligible electricity consumers — now officially designated as “prosumers” (consumers who both consume and produce power) — can generate electricity primarily through solar photovoltaic systems for their own consumption and export any surplus energy to the distribution network under a net billing arrangement.

According to NERC, the regulations are designed to achieve five core objectives: promote the adoption of renewable energy technologies, enhance energy security and reliability for electricity consumers, encourage private sector participation in distributed generation, support the reduction of greenhouse gas emissions, and facilitate efficient integration of renewable energy systems into distribution networks. “The Regulations establish a framework that enables eligible electricity customers (Prosumers) to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own consumption and export surplus energy to the distribution network under a Net Billing Arrangement,” the commission stated. The net billing regulations arrive as Nigeria continues to grapple with significant electricity supply challenges. According to recent NERC data, average available generation stood at just 4,286 megawatts in April 2026 out of a total installed capacity of 13,625 megawatts across 28 grid-connected plants — meaning generation companies operated at only 31 per cent of installed capacity. The country also experienced its first national grid collapse of 2026 on January 23, when total generation fell to 0.00 megawatts, plunging large parts of the country into darkness. The gap between supply and demand — estimated national demand stands at about 20,000 megawatts — has forced millions of households and businesses to rely heavily on petrol and diesel generators.

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To participate in the net billing scheme, applicants must meet several eligibility conditions established by the commission. Prospective prosumers must already be connected to a distribution company’s network and install renewable energy systems that comply with applicable technical and regulatory standards. They must also obtain approval from the relevant DisCo, execute a net billing agreement, and register with NERC. The commission specified that eligible renewable energy installations must have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp). This capacity threshold indicates that the scheme is targeted primarily at medium-to-large scale consumers — including commercial and industrial customers, factories, shopping complexes, office campuses, hospitals, and telecommunications facilities — rather than small residential customers with modest rooftop solar installations. Industry observers note that the 1.5-megawatt upper limit suggests NERC intends to stress-test the framework with a defined initial cohort before potentially expanding eligibility in the future.

NERC has outlined a clear procedural framework for interested customers seeking to participate in the net billing arrangement. Interested customers are required to apply to their respective distribution companies for a technical feasibility assessment. Upon receiving a complete application, the distribution licensee must conduct a technical feasibility study and issue a report. Where an application is approved, both parties must execute a Net Billing Agreement. Following the execution of the agreement, applicants must register with NERC in accordance with the provisions of the regulations before they can commence electricity export to the grid. “Interested customers are required to apply to their Distribution Licensee for a technical feasibility assessment,” the commission stated. “Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations.”

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Approved participants will receive bidirectional net metering facilities capable of separately measuring electricity imported from the distribution network and electricity exported to it. This metering infrastructure is essential for accurately tracking both the power consumed from the grid and the surplus solar energy supplied back. The regulations mandate that distribution companies install revenue-grade import/export meters with time-of-use capability to ensure accurate measurement and billing. The commission disclosed that electricity exported to the grid will attract credits based on an export tariff approved by NERC, creating a financial incentive for consumers investing in solar energy systems. Monthly electricity bills issued to participating customers will indicate imported energy, exported energy, applicable tariffs, export credits, and the net amount payable for the billing period. A significant feature of the framework allows unused export credits to be carried forward to subsequent billing cycles, enabling customers to offset future electricity costs with accumulated credits from excess renewable energy supplied to the grid. The initiative is expected to boost distributed renewable energy generation while helping consumers reduce electricity costs and improve power reliability. For many large-scale organisations, solar installations often generate excess electricity during peak sunshine hours, especially on weekends or during periods of reduced operational activity. The new framework allows such surplus generation to be utilised productively rather than wasted.

The Net Billing Regulations 2026 complement other recent NERC initiatives aimed at improving electricity access across Nigeria. In April 2026, the commission issued the Mini-Grid Regulations 2026, which raised capacity thresholds for mini-grids to 5 megawatts for isolated systems and 10 megawatts for interconnected systems, providing a comprehensive framework for the development, operation, and oversight of mini-grids, with a focus on attracting investment and ensuring consumer protection in underserved and unserved communities. Industry groups representing renewable energy developers had lobbied for clearer rules governing grid-tied solar for commercial customers for several years, arguing that regulatory ambiguity was suppressing investment even among companies willing to commit capital. Together, these regulatory reforms represent a concerted effort to decentralise electricity generation, attract private capital into distributed energy projects, and accelerate Nigeria’s transition toward a more sustainable and reliable power sector.

NERC advised stakeholders and interested participants seeking additional information on the programme to consult the Net Billing Regulations 2026, which are available on the commission’s official website. The commission urged interested customers to begin the process by applying to their distribution company for a technical feasibility assessment. Once approved, participants must execute a Net Billing Agreement and register with NERC before they can begin exporting power. The launch of the Net Billing Regulation marks a significant shift in Nigeria’s electricity landscape, opening the door for businesses, industries, and larger households to become active participants in the country’s energy supply rather than passive consumers — and to be compensated accordingly.

NERC Launches Net Billing Scheme, Allows Nigerians to Sell Excess Solar Power to DisCos

Nigeria Must Build, Not Just Import Vehicles, Oyeyemi Tells FG as Auto Policy Review Begins

The Federal Government has commenced a fresh review of Nigeria’s automotive policy to accommodate emerging technologies such as electric vehicles (EVs), compressed natural gas (CNG)-powered vehicles and other alternative energy solutions, even as stakeholders have called for a more consistent policy framework that prioritises local manufacturing and value creation.

The development was disclosed at the 30th anniversary celebration of Motoring World International in Lagos, where industry leaders highlighted the urgent need to reposition Nigeria’s automotive sector for sustainable growth and global competitiveness.

Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, represented by the ministry’s Desk Officer for the Auto Industry, Samuel Adetoro, said the ongoing policy review is aimed at aligning Nigeria’s automotive ecosystem with global trends in sustainable mobility and industrial development.

According to the minister, the automotive industry remains a critical pillar of Nigeria’s industrialisation agenda with the capacity to generate employment, attract investments, deepen local manufacturing and reduce dependence on imported vehicles.

She explained that while the existing automotive policy had provided a framework for vehicle assembly operations, rapid technological advancements and changing global realities made it necessary to update the policy to address current and future transportation needs.

“The Ministry is working closely with stakeholders on the review of the National Automotive Industry Development Framework to ensure that it responds effectively to emerging realities, including electric mobility, CNG vehicles, automotive software development, smart manufacturing and green transportation technologies,” she said.

Oduwole added that the government is seeking to create an enabling environment that will encourage local production and assembly of alternative-fuel vehicles, while strengthening local content development, technology transfer, research and development, and the competitiveness of Nigerian automotive manufacturers.

She stressed that collaboration between government and the private sector would be crucial to building an automotive ecosystem capable of serving both domestic and regional markets under the African Continental Free Trade Area (AfCFTA).

The review comes amid the prolonged delay in the passage of the National Automotive Industry Development Plan (NAIDP) Bill, which is intended to provide a legislative and regulatory framework for investors in the sector.

The bill, passed by the Eighth National Assembly, was denied presidential assent and has remained in limbo for more than a decade.

Speaking at the event, former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, urged the Federal Government to adopt a long-term and consistent automotive industry policy focused on domestic manufacturing rather than revenue generation through vehicle import duties.

Oyeyemi, who chaired the occasion and is also President of the Chartered Institute of Logistics and Transport (CILT), said Nigeria possesses one of Africa’s largest automotive markets, supported by a population of over 240 million people, an estimated vehicle fleet of 21 million and more than 204,000 kilometres of road network.

However, he lamented that policy inconsistencies and weak support for local manufacturers had prevented the country from fully harnessing its vast potential.

He noted that repeated reviews of the National Automotive Industry Development Plan and related regulatory frameworks had failed to generate sustained industrial momentum, forcing investors to enter and exit the sector while several assembly plants struggled to survive.

According to him, Nigeria remains heavily dependent on imported used vehicles despite its enormous capacity for vehicle assembly, component manufacturing, automotive financing and electric vehicle infrastructure development.

Also speaking, Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, represented by the council’s Director of Press and Public Affairs, Susan Bisong-Taiwo, called for stronger collaboration among government, industry stakeholders and the media to accelerate automotive industrialisation.

He said the council is implementing initiatives in electric vehicle development, CNG conversion, local content promotion, component manufacturing, skills acquisition and strategic partnerships aimed at transforming Nigeria from a vehicle-consuming nation into a leading automotive manufacturing hub in Africa.

Osanipin said the automotive industry is at a critical turning point globally, with innovations in electric mobility, alternative fuels, smart manufacturing and digital technologies redefining the future of transportation. He stressed that Nigeria must move swiftly to position itself as a key player in the evolving automotive landscape rather than remain a passive consumer of imported technologies.

According to him, the NADDC is pursuing strategic programmes designed to deepen local capacity, strengthen the automotive value chain and create employment opportunities for Nigerians. These initiatives, he noted, include support for local component manufacturing, skills development, research and innovation, as well as partnerships aimed at accelerating the adoption of cleaner and more efficient vehicle technologies.

“The future of mobility is already here, and it is being driven by innovation, sustainability and collaboration. Nigeria must not be left behind. Through deliberate policies, strategic investments and strong partnerships among government, industry players and the media, we can transform our nation from a vehicle-consuming market into a competitive automotive manufacturing and innovation hub for Africa,” Osanipin said.

Transport Logistics Key to Nigeria’s Growth, Says TCAN, Unveils 2026 Summit

The Transportation Correspondents Association of Nigeria (TCAN) has announced plans to honour outstanding contributors to the growth of Nigeria’s transport sector at its 2026 Annual Transport Summit scheduled for September 24, 2026.

The summit, themed “Unlocking Economic Growth Through Transportation Logistics,” will be held at the Radisson Hotel & Suites, Lagos, and is expected to bring together major stakeholders across the transportation value chain, including aviation, maritime, rail, road transport and logistics services, as well as policymakers, regulators, financial institutions, development partners and industry leaders.

In a statement, TCAN disclosed that the event would feature the presentation of Champions of Transport Industry Development (CoTID) awards to government agencies, state governments and private-sector operators that have made significant contributions to advancing Nigeria’s transportation ecosystem.

According to the association, the awards are designed to recognise organisations and institutions whose efforts have helped improve transport infrastructure, logistics efficiency and service delivery across the country.

TCAN Chairman, Tola Adenubi, said transportation logistics remains a critical driver of economic development, stressing that individuals, agencies and organisations making meaningful contributions to the sector deserve recognition.

“From cargo handling at airports and seaports to freight movement on inland waterways and last-mile delivery systems, the efficiency of Nigeria’s logistics network has a direct impact on the competitiveness and growth of the national economy,” Adenubi said.

He noted that the summit would provide a platform for stakeholders to explore innovative approaches to improving the sector through digital transformation, infrastructure financing, public-private partnerships and policy reforms.

Also speaking, Chairman of the 2026 Summit Planning Committee, Suleiman Idris, said the gathering would feature keynote addresses, panel discussions and interactive sessions aimed at evaluating the current state of Nigeria’s transportation logistics framework.

He explained that participants would identify key challenges limiting efficient cargo and passenger movement, assess the role of multimodal transport integration in economic expansion, and examine emerging investment opportunities within the logistics and supply chain industry.

According to Idris, experts and industry leaders at the summit will also develop practical policy recommendations aimed at enhancing operational efficiency and strengthening Nigeria’s competitiveness in the global logistics market.

Over the years, the TCAN Annual Transport Summit has evolved into one of the industry’s leading platforms for engagement between government agencies, transport operators and other stakeholders.

The forum has continued to facilitate policy dialogue, promote accountability and support the development of a more efficient and sustainable transportation sector in Nigeria.