Generation License Application
Generation License Application
The Nigerian Electricity Regulatory Commission (NERC) issues Generation Licenses to operators of electricity generation plants across three categories: On-grid, Off-grid, and Embedded generation. This license authorizes the holder to construct, own, operate, and maintain a power generation facility.
| Licence Type | Description | Typical Capacity |
| On-grid | Generation connected to the national transmission network | All capacities |
| Off-grid | Standalone generation not connected to the grid | All capacities |
| Embedded | Generation connected to the distribution network | Typically smaller scale |
Application Requirements
Mandatory Documents
All applicants must submit the following:
- Completed application form
- Certificate of incorporation and memorandum/articles of association (or deed of partnership/trust)
- Registered title deed to site, sale agreement, deed of assignment/gift, or evidence of submission to land processing agency
- Tax clearance certificate for the immediate past three (3) years
- Ten-year business plan
- Off-take agreement or arrangement (Power Purchase Agreement)
- Environmental Impact Assessment (EIA) approval certificate, or proof of submission to the Ministry of Environment, or effluent management plan (for plants <10MW)
- Fuel supply agreement or letter from fuel supplier/transporter confirming inclusion in supply plans
- MoU or letter of intent from EPC contractor (if applicable)
- MoU or letter of intent from technical partner (if applicable)
- Financing agreements or funding letter from financial institution(s)
- Timelines for commissioning and phased capacity rollout
Technical Documentation
| Category | Required Documents |
| Site Information | • Site Map (fuel delivery, storage, transmission evacuation, pipelines, waste disposal) • Location Map (roads, rail, transmission lines, rivers, reservoirs) • Principal single-line diagram |
| Fuel & Water | • Fuel sourcing, transportation and supply arrangements • Water supply and availability analysis |
| Plant Design | • Plant design specifications • Power station information (capacity, units, size, annual generation, running regime, load factor) • Generator unit technical specifications (type, rating, voltage, frequency, speed, efficiency, reactance, cooling, excitation, protection, governor control, transformer data, manufacturer details) |
| Contracts | • EPC contract • Phasing details (if applicable) |
| Ancillary Services | • Black start facilities • Reactive power generation capabilities • Frequency response capability • Maximum Generation (MAXGEN) capability • Fast start capability |
| Grid Connection | • Evacuation studies (load flow, stability, short circuit) • TCN approval confirming connection point capacity |
| Safety & Environment | • Emergency response plan • Fire fighting facilities • First Aid provisions • Safety training plans • Personal Protective Equipment (PPE) • Health & Safety Policy • Environmental Impact Assessment and waste management plan |
| Commissioning | • Expected date of commissioning |
Applicable Fees (Non-Refundable)
Applicable Fees (Non-Refundable)
On-Grid Generation
Processing Fees (paid on submission):
| Capacity | Fee (NGN) |
| 1 – 10MW | 75,000 |
| 11 – 50MW | 150,000 |
| 51 – 100MW | 200,000 |
| 101 – 200MW | 250,000 |
| 201 – 300MW | 350,000 |
| 301 – 400MW | 400,000 |
| 401 – 500MW | 450,000 |
| Above 500MW | 500,000 |
License Fees (paid after successful application, before granting):
| Capacity | Fee (USD) |
| 1 – 10MW | $5,000 |
| 11 – 50MW | $30,000 |
| 51 – 100MW | $40,000 |
| 101 – 200MW | $60,000 |
| 201 – 300MW | $80,000 |
| 301 – 400MW | $100,000 |
| 401 – 500MW | $120,000 |
| Above 500MW | $140,000 |
Off-Grid Generation
Processing Fees (paid on submission):
| Capacity | Fee (NGN) |
| 1 – 10MW | 50,000 |
| 11 – 25MW | 150,000 |
| 26 – 40MW | 175,000 |
| 41 – 60MW | 225,000 |
| 61 – 85MW | 250,000 |
| 86 – 100MW | 275,000 |
| 101 – 200MW | 300,000 |
| 201 – 400MW | 400,000 |
| 401 – 500MW | 500,000 |
| Above 500MW | 600,000 |
License Fees (paid after successful application, before granting):
| Capacity | Fee (USD) |
| 1 – 10MW | $10,000 |
| 11 – 25MW | $35,000 |
| 26 – 40MW | $40,000 |
| 41 – 60MW | $45,000 |
| 61 – 85MW | $50,000 |
| 86 – 100MW | $55,000 |
| 101 – 200MW | $75,000 |
| 201 – 400MW | $95,000 |
| 401 – 500MW | $150,000 |
| Above 500MW | $200,000 |
Note: Licence fees may be paid in US Dollars or Naira equivalent.
Processing Timeline
Standard Processing Time: 6 months from complete application submission
Embedded Generation Specific Requirements
In addition to mandatory documents, embedded generation applicants must provide draft agreements for:
- Power Purchase Agreement
- Connection Agreement
- Use of Distribution System Agreement
- Ancillary Services Agreement
- Fuel Supply Agreement
And:
- Environmental Impact Assessment approval (≥10MW) or effluent management policy (<10MW)
- Registered title deed
- Corporate documents (certificate of incorporation, memorandum/articles of association)
How to Apply
- Prepare all mandatory and technical documentation as listed above
- Pay the applicable processing fee based on your plant capacity
- Submit completed application form with all supporting documents to NERC
- Await application review and processing (6 months)
- Upon approval, pay the license fee
- Receive Generation License
Contact Information
Nigerian Electricity Regulatory Commission
Address: Plot 1387, Cadastral Zone A00, Central Business District, PMB 136, Garki, Abuja, FCT, Nigeria
Phone: +234-09-462-1400 / +234-09-462-1410
Email: info@nerc.gov.ng
Website: www.nerc.gov.ng]
Downloadable Resources
- Generation License Application Form
- Document Checklist
- Fee Schedule PDF
- Technical Specifications Template