The Cost of Regulation: Nigeria State Electricity Market Fees (Position Paper)

Predictable, proportionate state licensing fees can help accelerate minigrid deployment and electricity access in Nigeria. In this position paper, AMDA and the Renewable Energy Association of Nigeria (REAN) recommend seven principles for state regulators, including Naira-denominated fees, proportionate fees across capacity bands, portfolio authorisation, and ten-year licence validity.

The paper benchmarks the fee schedules of NERC and three state commissions (Nasarawa, Kogi and Niger) and examines how fee levels, currency and licence validity affect project economics and investment predictability.

This matters because about 87.2 million Nigerians lacked electricity access in 2024, and private investment is central to meeting Mission 300 targets.