Nigerian Electricity Regulatory Commission (NERC) has issued the Net Billing Regulations, 2026 (the Regulations) establishing a regulatory framework that enables customers with renewable energy systems whose systems meet certain requirements to export excess electricity to the distribution network of a Distribution Licensee and receive credits against their electricity consumption.
The Regulations represent a significant development in Nigeria’s electricity sector, with implications for renewable energy adoption, consumer participation, distribution network operations, and the broader energy transition agenda.
In this edition of our newsletter, we examine the key provisions of the Regulations, their commercial and regulatory implications, and some of the legal questions that may arise as Nigeria’s electricity market continues to evolve.
We invite you to read the full publication and share your thoughts.
Why Nigeria needed net billing rules
Electricity consumers across Nigeria increasingly adopt distributed renewable energy systems. That shift created a need for rules allowing them to derive value from surplus electricity they generate but do not consume on site.
Historically, such systems served self-consumption alone. Excess generation was often curtailed or simply wasted, because no clear mechanism existed to capture its value. Consequently, the economics of rooftop and on-site systems looked weaker than they needed to.
What the Regulations set out to do
The Regulations establish a framework for integrating customer-owned Renewable Energy Systems into the distribution network.
They permit eligible customers, described as “Prosumers”, to generate electricity for their own consumption. In addition, those customers may export surplus electricity to the distribution network and receive credits against their consumption.
Beyond the immediate commercial effect, the framework supports wider goals. It encourages distributed generation, and it advances Nigeria’s broader energy transition and sustainability objectives.
What it means for customers and developers
Prosumer status turns on eligibility, so customers should check the requirements carefully before investing. Developers, meanwhile, gain a clearer basis on which to size systems and model returns.
Our newsletter examines the Regulations, the conditions attaching to Prosumer status, and their implications for renewable energy adoption. Click the button below to read the publication.
