The Nigerian Electricity Regulatory Commission (NERC) has introduced a new set of regulations aimed at reducing electricity transmission losses and improving transparency across Nigeria’s national grid.
Under Order No. NERC/2026/026, the commission established a strengthened framework for monitoring and reporting regional transmission loss factors within the country’s power transmission network.
The move is part of broader efforts to enhance efficiency and accountability in the power sector.
Data from the Nigerian Independent System Operator (NISO) shows that the national average transmission loss factor dropped from 8.71 per cent in 2024 to 7.24 per cent in 2025.
Despite the improvement, the figure remains above the 7 per cent benchmark set under the Multi-Year Tariff Order.
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The directive, 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.
As part of the new requirements, NISO has been mandated to install smart meters at all regional interconnection boundary points by December 2026 to enable accurate tracking of energy flows.
The operator is also expected to measure and document energy flow at transmission substations and submit quarterly reports on regional transmission losses to the regulator.
Meanwhile, the Transmission Company of Nigeria (TCN) has been directed to submit a comprehensive action plan by July 2026 detailing measures to reduce transmission losses.
The company is also 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 improve transparency, strengthen monitoring systems, and enhance operational efficiency across the grid.
It added that accurate reporting of transmission losses would support better planning, infrastructure management, and fair pricing within Nigeria’s electricity market.