The Nigerian Electricity Regulatory Commission (NERC) has moved to strengthen accountability in Nigeria’s electricity transmission system, following data showing that grid losses remain above approved limits, issuing a new directive to enforce stricter monitoring and reporting standards nationwide.
The regulator, Order No. NERC/2026/026, released on April 8, 2026, introduced a comprehensive framework for tracking Regional Transmission Loss Factors (TLF), targeting improved efficiency across the national grid. The directive takes effect from April 13, 2026.
Figures obtained from the Nigerian Independent System Operator (NISO) show that while the national average transmission loss declined from 8.71 per cent in 2024 to 7.24 per cent in 2025, it still exceeds the 7 per cent ceiling set under the Multi-Year Tariff Order (MYTO).
The development has raised concerns within the sector, prompting the commission to mandate stricter compliance measures for operators, particularly the Transmission Company of Nigeria (TCN), which manages the country’s transmission infrastructure.
Under the new order, NISO is required to deploy smart meters at all regional boundary interconnection points by December 2026 to ensure precise measurement of energy flows across the grid.
The system operator will also document power transformer energy flows at transmission substations and submit quarterly regional TLF reports to NERC.
TCN has been directed to submit a detailed action plan by July 2026 outlining how it will reduce transmission losses to within the approved 7 per cent benchmark, in a move to enforce performance targets.
The commission has set a stricter year-end target, mandating that transmission losses across all regions must not exceed 6.5 per cent by December 2026.
The order draws its authority from the Electricity Act 2023, which empowers NERC to regulate and monitor operational efficiency across Nigeria’s electricity market.
Independent reports that the directive signals a more aggressive regulatory stance aimed at addressing persistent inefficiencies in the power sector, where transmission losses have long contributed to revenue shortfalls and unreliable electricity supply.
By enforcing structured, transparent reporting of losses, NERC aims to create a data-driven framework that not only improves grid performance but also enhances investor confidence in Nigeria’s electricity market.
The latest intervention underscores growing regulatory pressure on transmission operators to close efficiency gaps and align with national performance benchmarks, as the government pushes broader reforms in the Nigerian Electricity Supply Industry (NESI).
