- The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026, establishing a strict framework for monitoring and reporting regional transmission losses across the national grid.
- The Nigerian Independent System Operator (NISO) must install smart meters at all regional interconnection points by December 2026 to ensure accurate data on energy flows.
- The Transmission Company of Nigeria (TCN) is mandated to submit an action plan by July 2026 to reduce transmission losses to a maximum of 6.5% by the end of 2026.
The Nigerian Electricity Regulatory Commission (NERC) has officially launched a new set of regulations designed to tackle persistent inefficiencies in the country’s power transmission network.
Eko Hot Blog reports that effective from today, April 13, 2026, the new order targets the reduction of “transmission loss factors”, the percentage of electricity lost between power plants and distribution companies.
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While data shows that losses dropped from 8.71% in 2024 to 7.24% in 2025, NERC maintains that these figures still exceed the 7% benchmark required for a stable and fairly priced electricity market.
Under the provisions of the Electricity Act 2023, the commission has shifted the responsibility for high-precision measurement to the Nigerian Independent System Operator (NISO).
NISO is now legally required to document energy flow at every power transformer within transmission substations.
This data will be compiled into quarterly regional reports, providing a level of transparency previously missing from the sector.
The ultimate goal is to move beyond estimates and ensure that every megawatt generated is accounted for as it moves across the grid.
To ensure compliance, the Transmission Company of Nigeria (TCN) has been given a deadline of July 2026 to present a comprehensive technical roadmap.
This plan must outline specific infrastructure upgrades and maintenance strategies required to bring transmission losses down to 6.5% or less by December 2026.
NERC emphasized that accurate reporting is not just a technical requirement but a financial necessity, as it directly impacts the Multi-Year Tariff Order (MYTO) and ensures that consumers are not unfairly billed for energy lost due to aging equipment.
The commission’s move reflects a broader push for accountability within the power value chain.
By enforcing regional monitoring, NERC aims to identify specific areas of the grid that require urgent investment, thereby supporting better long-term infrastructure planning.
As these new rules take effect, stakeholders in the electricity market will be watching closely to see if the increased oversight translates into a more reliable and efficient power supply for Nigerians.
