Generation Licence
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)
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
Additional Provisions
Fees apply to applications for the assignment or ceding of a license, transfer of undertaking, or change in shareholding of licensed entities in accordance with applicable regulations.
All outstanding debts, including operating fees owed to the Commission by a licensee, must be fully settled prior to the processing of such applications.
A non-refundable processing fee of NGN 1,000,000 shall apply to requests for assignment, transfer, or change in shareholding.
The Commission reserves the right to request additional information or documentation as may be required for the processing of any application for licenses, permits, or authorizations.
The stated processing timeline shall commence from the date the Commission acknowledges receipt of a complete application and shall end on the date the Applicant is formally notified of the decision to approve or refuse the application.
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