The Nigerian Electricity Regulatory Commission (NERC) has introduced new regulations aimed at reducing electricity transmission losses and improving transparency across Nigeria’s national grid, while also unveiling fresh guidelines for mini-grid operators.
The transmission loss framework, issued under Order No. NERC/2026/026, establishes a strengthened system for monitoring and reporting Regional Transmission Loss Factors across the electricity network.
Data from the Nigerian Independent System Operator shows that transmission losses averaged 8.71% in 2024 before dropping to 7.24% in 2025, though still above the 7% benchmark set under the Multi-Year Tariff Order (MYTO).
The order, which takes effect from April 13, 2026, is backed by the Electricity Act 2023 and requires improved monitoring, including installation of smart meters at all regional interconnection points by December 2026.
It also mandates quarterly reporting of transmission losses and requires the Transmission Company of Nigeria to submit an action plan by July 2026 aimed at reducing losses to 6.5% by the end of the year.
NERC said the reforms are designed to improve transparency, enhance grid efficiency, and support fair electricity pricing across the sector.
In a related development, the commission also released the Mini-Grid Regulations 2026, a new framework governing the development and operation of mini-grid systems across Nigeria.
The regulations cover isolated mini-grids (up to 5MW) and interconnected systems (up to 10MW), aimed at expanding electricity access in underserved and unserved communities.
Mini-grid operators below 100KW are required to register, while larger systems must obtain permits within 30 business days. Operators will also be required to submit regular reports depending on their capacity.
NERC said the framework is intended to encourage investment, strengthen oversight, and accelerate rural electrification by providing clearer operational guidelines for developers and stakeholders.
