The Nigerian Electricity Regulatory Commission (NERC) has rolled out new regulations aimed at reducing electricity transmission losses and improving transparency and efficiency across the national grid.
The commission issued Order No. NERC/2026/026, which establishes a strengthened framework for the reporting and monitoring of Regional Transmission Loss Factors across Nigeria’s electricity transmission network.
In a statement issued on Monday, the commission said data from the Nigerian Independent System Operator (NISO) showed that the national average transmission loss factor was 8.71% in 2024, before dropping to 7.24% in 2025.
Despite the improvement, it noted that the figure remains above the 7% benchmark set under the Multi-Year Tariff Order (MYTO).
According to NERC, the order, dated 8 April 2026 and effective from 13 April 2026, is backed by provisions of the Electricity Act 2023, which empowers NERC to regulate efficiency and accountability in the electricity sector.
“Under the new order, the Nigerian Independent System Operator (NISO) is required to install smart meters at all regional interconnection boundary points by December 2026 to ensure accurate measurement of energy flows.
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“NISO is also expected to measure and document energy flow at power transformers in transmission substations and submit quarterly regional reports on transmission losses to the regulator,” it stated.
The Transmission Company of Nigeria has been directed to submit an action plan by July 2026 to reduce losses to within approved benchmarks and ensure that transmission losses across all regions do not exceed 6.5 per cent by December 2026.
“Taking effect from April 13 2026, the Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.
“The objective of this order is to enhance transparency, improve monitoring, and ensure efficiency in the management of transmission losses across the grid,” the commission said.
It added that accurate reporting of transmission losses is critical to improving overall grid performance and supporting fair pricing within the electricity market.
NERC stressed that the new framework is expected to support better planning, improved infrastructure management, and stronger regulatory oversight across Nigeria’s electricity transmission system.
