The Nigerian Electricity Regulatory Commission (NERC) has introduced new regulations aimed at reducing electricity transmission losses and improving transparency across the national grid.
The commission issued Order No. NERC/2026/026, establishing a strengthened framework for the reporting and monitoring of Regional Transmission Loss Factors across Nigeria’s transmission network.
Data from the Nigerian Independent System Operator (NISO) showed that the national average transmission loss factor declined from 8.71 per cent in 2024 to 7.24 per cent in 2025, though still above the 7 per cent benchmark set under the Multi-Year Tariff Order.
The order, dated April 8, 2026, and effective from April 13, 2026, is backed by the Electricity Act 2023, which empowers NERC to enforce efficiency and accountability in the power sector.
“Under the new order, the Nigerian Independent System Operator is required to install smart meters at all regional interconnection boundary points by December 2026 to ensure accurate measurement of energy flows,” the commission said.
NISO is also expected to measure and document energy flows at power transformers in transmission substations and submit quarterly reports on transmission losses to the regulator.
Meanwhile, the Transmission Company of Nigeria (TCN) has been directed to submit an action plan by July 2026 outlining steps to reduce losses.
NERC added that transmission losses across all regions must not exceed 6.5 per cent by December 2026, as part of efforts to enhance efficiency and reliability in electricity supply nationwide.
