By Daniel Oluwatobiloba Popoola
The Nigerian Electricity Regulatory Commission has introduced new regulations aimed at cutting electricity transmission losses and strengthening transparency across the national grid.
The directive, contained in Order No. NERC/2026/026 dated Wednesday, 8 April, 2026 and effective from Monday 13 April 2026, establishes a robust framework for the monitoring and reporting of Regional Transmission Loss Factors, in line with the provisions of the Electricity Act 2023, which empowers the commission to enforce efficiency and accountability in the power sector.
According to the commission, the new order mandates the Nigerian Independent System Operator to install smart meters at all regional interconnection boundary points by December 2026 to ensure accurate measurement of energy flows across the grid.
“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,” the commission stated.
It added that NISO is also expected to measure and document energy flow at power transformers in transmission substations, as well as submit quarterly regional reports on transmission losses to the regulator.
Furthermore, the Transmission Company of Nigeria has been directed to submit a comprehensive action plan by July 2026 aimed at reducing transmission losses to within approved benchmarks, with a target of ensuring that losses across all regions do not exceed 6.5 per cent by December 2026.
Data from the system operator showed that the national average transmission loss factor stood at 8.71 per cent in 2024 before declining to 7.24 per cent in 2025. However, the commission noted that the figure remains above the 7 per cent benchmark set under the Multi-Year Tariff Order.
“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 further stressed that accurate reporting of transmission losses is critical to improving overall grid performance and supporting fair pricing within the electricity market.
Consequently, the commission expressed confidence that the new framework would support better planning, improved infrastructure management and stronger regulatory oversight across Nigeria’s electricity transmission system.
