The Nigerian Electricity Regulatory Commission (NERC) has identified the upcoming Net Billing Regulation as an essential policy tool for aligning Nigeria’s power sector with modern global standards. The commission states that this new framework is critical for incentivising private investment in renewable energy generation and significantly enhancing the overall stability and resilience of the nation’s electricity grid.
Speaking at a recent public consultation on the draft regulation in Abuja, Yusuf Ali, NERC’s Commissioner for Research and Data Analytics, emphasised that the new rule signals the commission’s resolve to build a more inclusive and forward-looking electricity market.
The core purpose of the regulation is to establish a standardised and transparent process for connecting customer-owned renewable energy systems—such as solar installations—to the existing electricity distribution network. Crucially, it will permit customers to export their surplus power back to the grid under a credit-based billing system.
This mechanism not only provides a clear way to compensate customers for the excess energy they produce, but it also elevates them to the status of ‘prosumers’—consumers who generate more electricity than they consume and inject the surplus into the national grid at a fair value. NERC views this shift as vital for attracting necessary private capital into the renewables sector.
Commissioner Ali highlighted NERC’s commitment to a transparent process by publishing the draft for public scrutiny and actively seeking input. Stakeholders, including electricity distribution companies (DisCos), regulatory bodies from Nigerian states, and international development partners, were invited to offer technical and practical feedback to ensure the final framework accurately reflects real-world market conditions. Ali stressed the iterative nature of the process, noting that the document is a draft intended to evolve through robust debate, and that the commission would not let the pursuit of perfection impede tangible progress.
The initiative has received strong commendation from development partners. Milos Karic, head of Component for Sustainable Energy Planning and Access at the German Development Agency (GIZ), praised NERC’s leadership. He noted that GIZ, through its Nigerian Energy Support Program, is proud to support the development of this regulation at a time when the country must urgently address issues like grid reliability, electricity access, and the greater integration of renewable energy sources.
Similarly, Godfrey Ogbemudia, programme manager for Energy and Circular Economy for the European Union Delegation, lauded the policy. He affirmed that the Net Billing Regulation is consistent with the EU’s Green Deal objectives and represents the adaptation of global best practices to Nigeria’s unique market realities. He reiterated the EU’s deep commitment to supporting Nigeria’s clean energy agenda and working with NERC to promote a stronger market for decentralised energy projects. The regulation is expected to come into full effect shortly after it receives final approval through a resolution by the commission.
