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 new directive, issued as Order No. NERC/2026/026, establishes a strengthened framework for monitoring and reporting Regional Transmission Loss Factors across the country’s electricity transmission network.
According to data from the Nigerian Independent System Operator, the national average transmission loss stood at 8.71% in 2024, dropping to 7.24% in 2025. However, this still remains above the 7% benchmark set under the Multi-Year Tariff Order (MYTO).
The order, signed 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 accountability in the power sector.
Under the new rules, the Nigerian Independent System Operator is required to install smart meters at regional interconnection points by December 2026 to ensure accurate measurement of electricity flows. It must also measure energy flow at transmission substations and submit quarterly reports on losses to the regulator.
In addition, the Transmission Company of Nigeria (TCN) has been directed to submit an action plan by July 2026 aimed at reducing losses to within approved benchmarks, with a target of ensuring transmission losses do not exceed 6.5% by December 2026.
NERC stated that the objective of the order is to enhance transparency, improve monitoring, and ensure greater efficiency in the management of the national grid. The commission added that accurate reporting of transmission losses is essential for better planning, infrastructure management, and fair pricing in the electricity market.
