The recently released Mini-Grid Regulations, 2026, promise a great fillip to the nation's beleaguered power sector. By proposing the establishment of mini-grids in areas currently unserved or underserved by the power-generating distribution companies, the policy offers a new phase in Nigeria's search for lasting solutions to the energy crisis. This is a welcome development.
Poor, unreliable, and expensive electricity supply has contributed to Nigeria's stunted industrial progress. From the latest official figures, Nigeria's current power generation in early April 2026 was just 4,300 MW. For a country of Nigeria's size and a population of over 240 million people, this is grossly insufficient to sustain a reasonable level of economic growth.
Every Nigerian has the right to access electricity, which in today's world is no longer an exclusive luxury for urban dwellers. Electricity has become the key driver of every economy, big or small, for operators in both the formal and informal sectors. Unfortunately, the power-generating and distribution companies cannot cover the entire country, at least for now, and the reasons have become obvious. This reality has created a huge void in the nation's power sector, and the proposed mini-grid strategy is an appropriate answer to it.
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The sizes of the grids, as specified in the regulations, make the plants quite affordable and therefore relevant to Nigeria's needs. The regulations define a mini-grid as "any electricity supply system with its own generation capacity supplying electricity to more than one customer." The new regulation by the NERC creates a formal framework for mini-grids: isolated mini-grids up to 5MW and interconnected mini-grids up to 10MW, with systems below 100kW requiring registration and those above 100kW requiring permits. It also creates reporting obligations, tariff clarity, investor protection, and stronger coordination among developers, DisCos, and host communities. NERC promises that permits for the grids could be processed within 30 business days.
These smaller plants have many features that support the adoption of this strategy. They are easier to establish by communities (defined in the document as "a group of people within the same geographical location organised under a recognised local leadership structure or a legally recognised corporate entity"). Such groups or communities can come together to pool funds for that purpose. Additionally, the plants are easier to manage and maintain, given their closeness to, and the involvement of, the communities they serve.
The establishment of these smaller grids will help to reduce the load on the national grid and limit the frequency and impact of the collapse of the national grid. This has become a recurring experience across the nation, which often throws states and regions into darkness for hours before the system is restored. No modern economy can operate like this. Given the frequency of the collapse of the national grid and its extensive impacts, it makes good business sense to adopt the planned mini-grids, if only as a decentralisation strategy.
Interestingly, the model prescribed in the regulations provides details of the involvement of communities, through their representatives, in the establishment and management of the mini-grids.
The story of Geometric Power in Aba, Abia State, is a good example of how adopting the mini-grid power strategy can alter the electricity supply equation in Nigeria and meet producers' power needs without much ado. Geometric commissioned its $800 million Aba Integrated Power Project in February 2024, comprising a 188MW gas-fired plant, and covers nine local government areas in the state.
The power plant has transformed the business landscape in Aba, positively impacting hundreds of micro, small, and medium enterprises. With reliable and cheaper electricity, Aba shoemakers and garment manufacturers have scaled up production and now boast of increasing exports. A few years ago, the place was boring and dormant.
This approach to electricity supply in Nigeria has enormous advantages. It will bring immediate impact on the informal sector, where most of the Small and Medium Enterprises operate. It will enable them to work at full capacity by enabling the deployment of additional resources, including locally fabricated machinery, to drive their operations, whether as agro-processors, farmers, or other types of entrepreneurs in the agricultural value chain.
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Given that these enterprises account for a larger proportion of employment generation and production output, it is obvious that the mini-grids approach could be the push that the Nigerian economy needs to experience a turnaround.
However, while the plan sounds good on paper, Daily Trust believes that its applicability rests squarely on the shoulders of the relevant agency. In pursuing this plan, NERC must be proactive. We, therefore, call on NERC to be firm in its supervisory role, ensuring that the process is not hijacked by powerful "money bags".
In each case, the applicants must include residents of communities who stand to benefit directly from the investment. They are also more likely to be committed to the efficient operation of the plants since their livelihoods will depend on them. This must not be another of the good plans that end up on paper.
