The Nigerian Electricity Regulatory Commission (NERC) has introduced new regulations aimed at reducing electricity transmission losses and improving transparency across Nigeria’s national grid.
The directive, issued under Order No. NERC/2026/026, establishes a strengthened framework for monitoring and reporting regional transmission loss factors within the power network as part of broader efforts to enhance efficiency and accountability.
According to data from the Nigerian Independent System Operator (NISO), the national average transmission loss factor fell from 8.71 per cent in 2024 to 7.24 per cent in 2025. Despite this improvement, the figure remains above the 7 per cent benchmark set under the Multi-Year Tariff Order.
The order, issued on April 8, 2026 and effective from April 13, 2026, is backed by provisions of the Electricity Act 2023, which empowers NERC to regulate efficiency and ensure accountability in the electricity market.
Under the new framework, NISO has been directed to install smart meters at all regional interconnection boundary points by December 2026 to ensure accurate tracking of energy flows. It is also required to measure and document energy flow at transmission substations and submit quarterly reports on regional losses to the regulator.
The Transmission Company of Nigeria (TCN) has been instructed to present a comprehensive action plan by July 2026 detailing steps to reduce transmission losses. It is expected to ensure that losses across all regions do not exceed 6.5 per cent by December 2026.
NERC said the initiative is designed to strengthen monitoring systems, improve operational efficiency and enhance transparency across the electricity value chain.
The commission added that more accurate reporting of transmission losses will support better planning, infrastructure management and fair pricing within Nigeria’s electricity market.