Written by
Ishioma Appiah-Yeboah
The Nigerian Electricity Regulatory Commission, NERC, has issued a new directive aimed at improving transparency and efficiency in Nigeria’s power sector through enhanced monitoring of transmission losses.
The directive, known as Order Number NERC slash 2026 slash 026, introduces a framework for reporting Regional Transmission Loss Factors across the national grid.
According to data from the Nigerian Independent System Operator, the country’s average transmission loss dropped from 8 point 7 1 percent in 2024 to 7 point 2 4 percent in 2025. Despite the improvement, the figure still exceeds the 7 percent benchmark set under the Multi Year Tariff Order.
Under the new order, which takes effect from April 13, 2026, the Transmission Company of Nigeria is required to implement measures to further reduce losses across its regional networks.
The directive mandates the installation of smart meters at all regional interconnection points by December 2026, as well as detailed measurement and documentation of energy flows at transmission substations.
In addition, the system operator is to submit quarterly reports on transmission losses, while the Transmission Company of Nigeria is expected to present a concrete action plan by July 2026.
The Commission says the goal is to ensure transmission losses do not exceed 6 point 5 percent by the end of the year, thereby improving grid performance and strengthening accountability in the electricity market.