The Nigerian Electricity Regulatory Commission (NERC) has approved three captive power generation permits with a combined capacity of 14.12MW in the second quarter of 2026. This development is part of NERC's efforts to enhance power generation and distribution in the country. According to the Commission's Second Quarter 2026 report, the permits were awarded to BUA Cement Plc, African Consulting Office Energy Solutions Limited, and Power Gas Ebedei Limited.
BUA Cement Plc received a permit for 12MW, which will be used to power its plant located at Kalambaina Street in Sokoto, Sokoto State. This allocation accounts for approximately 85 per cent of the total capacity approved in the quarter. The company's substantial allocation underscores its efforts to boost its power capacity for operations. The remaining capacity was distributed between African Consulting Office Energy Solutions Limited, which received a permit for 1MW, and Power Gas Ebedei Limited, which got a permit for 1.12MW.
The permits issued by NERC are categorized as captive, meaning the holders are entitled to own and maintain power plants exclusively for their own consumption. A key condition of these permits is that the electricity generated cannot be sold to any third party. This arrangement allows companies to manage their power needs independently. In the same quarter, NERC issued a total of 27 licences, permits, and certifications, including five licences that cover trading, embedded generation, off-grid generation, and independent distribution networks.
In addition to the captive power permits, NERC issued five licences to various companies. Midstream Solutions Limited was granted an electricity trading licence, while DMTL Oil & Gas Company Limited received a licence for 5MW of gas-fired embedded generation in Delta State. T&D West Africa Limited obtained an off-grid generation licence for a 1.25MW solar plant in the Federal Capital Territory. Furthermore, Delta Mega Trend Nigeria Limited and Coronation Power Distribution Company Limited each received an Independent Electricity Distribution Network (IEDN) licence.
NERC also certified 16 Meter Service Providers, comprising 15 installers and one importer. The certified installers include 14 holders of Class A1 certification and one, Universal Integrated Power and Utility Services Limited, which holds Class C1 certification. The importer, Ballack Industries Limited, is part of the efforts to enhance metering services across the country. According to NERC, Class A1 holders are qualified to install low-voltage single-phase and three-phase metering systems.
The available capacity on the national grid remained low during the quarter, with an average available capacity of 4,454.17MW. Notably, about 67 per cent of the installed capacity was unavailable for dispatch. This highlights the ongoing challenges in Nigeria's power sector, particularly in terms of generation and distribution capacity. The captive and mini-grid permits issued by NERC aim to address some of these challenges by increasing decentralized power generation.
In a related development, NERC issued one mini-grid permit with a gross capacity of 0.05MW to Skylight Engineering Service Limited for a project in Jibia Local Government Area, Katsina State. This mini-grid project is expected to contribute to the local power supply. The commission's efforts to diversify and expand power generation and distribution are ongoing, with various stakeholders being involved in these initiatives.
Key points
- - BUA Cement Plc secured a 12MW captive power permit for its Sokoto plant. - NERC issued a total of 27 licences, permits, and certifications in the second quarter of 2026. - The national grid's average available capacity was 4,454.17MW, with about 67 per cent of installed capacity unavailable for dispatch.
