Nigeria’s quest to address its power challenges has seen the Federal Government, in collaboration with the Nigerian Electricity Regulatory Commission (NERC), grant 13 new licenses for power generation, distribution, and trading.

According to the recently released 2023 third-quarter report titled ‘Licences and Permits Issued or Renewed,’ a total electricity generation capacity of 40.9 megawatts has been allocated to the newly licensed operators. This move signifies a significant step towards enhancing the country’s power infrastructure.

The report outlines that the issued licenses cover a wide spectrum of electricity-related activities—ranging from off-grid and embedded power generation to independent electricity distribution and trading. Notably, five new off-grid generation licenses have been granted, with the capacity to generate 8.81 megawatts during the review period.

Moreover, a license for embedded generation, capable of producing 5 megawatts, was also approved, consolidating the government’s commitment to diversifying the electricity generation mix.

The Nigerian Electricity Regulatory Commission, being the authoritative body in the country’s electricity sector, is responsible for issuing licenses across various segments such as generation, transmission, distribution, trading, and system operations. The commission’s role as a regulator and facilitator is crucial in ensuring proper governance and management of the electricity supply industry.

Additionally, the commission clarified that for activities not mandating licenses but requiring authorization, such as off-grid captive power generation and mini-grid development, operators are granted permits subsequent to a thorough review of their applications.

The newly issued licenses for Independent Electricity Distribution Network (IEDN), trading, off-grid and embedded generation signify a pivotal juncture in Nigeria’s power sector development. These licenses are expected to contribute significantly to the country’s efforts in achieving a reliable, efficient, and sustainable electricity supply for its populace.

This milestone emphasizes the government’s commitment to fostering a conducive environment for private sector participation in the electricity industry and catalyzing the much-needed expansion and modernization of Nigeria’s power infrastructure.