The Nigerian Electricity Regulatory Commission (NERC) has directed the Nigerian Independent System Operator (NISO) to install smart meters at all boundary regional interconnection points by December 2026.
The Circular Order No. NERC/2026/026, is expected to improve transparency and efficiency in Nigeria’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).
Data from the Nigerian Independent System Operator (NISO) indicate that the national average TLF was 8.71% in 2024 but was reduced to 7.24% in 2025. However, this still exceeds the 7% benchmark approved by NERC in the Multi Year Tariff Order (MYTO).
“The Order dated 8 April 2026 establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
“Taking effect from 13 April 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 regulator stated in the Circular.
Timeline of the Circular, NERC explained NISO would be expected to measure and document all energy flow of power transformers at transmission substations and file quarterly reports on TLF to NERC on a regional basis.
By the Circular, Transmission Company of Nigeria (TCN) is mandated to file an action plan by July 2026 on the reduction of TLF to a value within the 7% approved benchmarks in the regions, and ensure that TLF across transmission regions shall not exceed 6.5% by December 2026.
“The Order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting,” the regulator said.
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