The Nigerian Electricity Regulatory Commission (NERC) approved three captive power generation permits with a combined capacity of 14.12 megawatts (MW) in the second quarter of 2026, with BUA Cement Plc accounting for the largest share.
According to NERC’s Second Quarter 2026 report, BUA Cement received approval for a 12MW captive power plant at Kalambaina Street in Sokoto State.
The 12MW allocation represents about 85 per cent of the total captive generation capacity approved by the commission during the quarter.
African Consulting Office Energy Solutions Limited received approval for a 1MW captive power facility in Kazaure Local Government Area of Jigawa State, while Power Gas Ebedei Limited secured a permit for a 1.12MW facility in Ebedei Community, Delta State.
NERC explained that captive generation permits are issued to companies or organisations that intend to generate electricity exclusively for their own use.
Holders of such permits are not allowed to sell electricity generated from the facilities to third parties.
The approvals are separate from the five electricity generation and distribution licences issued by NERC during the quarter.
Overall, the commission issued 27 licences, permits and certifications between April and June 2026.
The approvals comprised five licences, three captive generation permits, one mini-grid permit, 16 certifications for Meter Service Providers and two permits for Meter Asset Providers.
Among the five licences, Midstream Solutions Limited received an electricity trading licence.
DMTL Oil & Gas Company Limited was granted approval for 5MW of gas-fired embedded generation in Delta State, while T&D West Africa Limited received an off-grid generation licence for a 1.25MW solar project in the Federal Capital Territory.
Delta Mega Trend Nigeria Limited and Coronation Power Distribution Company Limited were each granted Independent Electricity Distribution Network (IEDN) licences.
NERC also approves mini-grid project
Beyond the captive generation permits, NERC approved one mini-grid permit with a gross capacity of 0.05MW.
The permit was awarded to Skylight Engineering Service Limited for a project in Jibia Local Government Area of Katsina State.
The approvals came as the national electricity grid continued to operate below its installed capacity.
NERC reported that the average available generation capacity during the second quarter stood at 4,454.17MW, while about 67 per cent of the country’s installed generation capacity was unavailable for dispatch.
Metering approvals and customer coverage
The commission also certified 16 Meter Service Providers during the quarter. They included 15 installers and one importer.
Fourteen of the installers received Class A1 certification, while Universal Integrated Power and Utility Services Limited received Class C1 certification. Ballack Industries Limited was certified as an importer.
Under NERC’s certification framework, an A1-certified provider can install low-voltage single-phase and three-phase metering systems under contracts involving more than 750 meters.
A C1-certified provider, meanwhile, can undertake contracts involving more than 500 meters.
NERC also issued Meter Asset Provider permits to Universal Integrated Power and Utility Services Limited and Beacon Power Services.
Meter Asset Providers are authorised to finance, procure, supply, install and maintain electricity meters.
The new approvals come amid continued challenges with electricity metering across distribution companies.
As of the end of June, the 11 electricity distribution companies had 12,589,486 active customers on their books, of whom 7,743,839 were metered.
That translates to a metering rate of 61.51 per cent.
DisCos installed 350,270 meters during the second quarter, representing a 17.97 per cent decline compared with the first quarter.
No public hearings held during quarter
NERC’s report also disclosed that the commission did not hold any hearings or public consultations during the quarter.
It also did not issue any directives to licensees during the period.
However, the commission issued one Notice of Intention to Commence Enforcement to a licensee over non-compliance with a decision of a forum.
The latest approvals form part of NERC’s ongoing regulatory activities across electricity generation, distribution and metering as the sector continues to face challenges around available power capacity and customer metering.
