KEY POINTS
- NERC introduced new rules to improve transparency and reduce electricity transmission losses, targeting 6.5% by end of 2026.
- Smart metering, quarterly reporting, and stricter oversight have been mandated for NISO and TCN.
- Persistent infrastructure issues and poor revenue recovery continue to strain Nigeria’s power sector despite reforms.
Nigeria’s power sector regulator, the Nigerian Electricity Regulatory Commission, NERC, has rolled out fresh guidelines aimed at improving transparency and reducing electricity transmission losses across the country’s grid.
According to NERC, recent data from the Nigerian Independent System Operator (NISO) shows a modest improvement in transmission performance.
The national average Transmission Loss Factor (TLF) dropped from 8.71% in 2024 to 7.24% in 2025.
Despite this progress, the figure still exceeds the 7% benchmark set under the Multi-Year Tariff Order (MYTO), highlighting the need for stronger regulatory intervention.
New Reporting Framework Introduced
The directive, captured in Order No. NERC/2026/026, establishes a structured framework for tracking transmission losses across regions managed by the Transmission Company of Nigeria (TCN).
Backed by the Electricity Act 2023, the new rules take effect from April 13, 2026, empowering the regulator to enforce efficiency standards across the electricity market.
Under the guidelines, NISO must install smart meters at all regional interconnection points by December 2026 to improve accuracy in measuring electricity flows.
It is also required to track energy movements across transformers and submit quarterly reports on regional transmission losses.
Meanwhile, TCN has been directed to present a detailed plan by July 2026 on how it will reduce losses to the approved 7% threshold. NERC has gone further to set a tougher target of 6.5% by the end of 2026.
