The Nigerian Electricity Regulatory Commission has introduced new regulations to reduce electricity transmission losses and improve transparency across the national grid.
NERC said the regulation premised on Order No. NERC/2026/026, establishes a strengthened framework for the reporting and monitoring of Regional Transmission Loss Factors across Nigeria’s electricity transmission network.
According to a post on the commission’s X account, the new order permits the Nigerian Independent System Operator (NISO) to install smart meters at all regional interconnection boundary points by December 2026 to ensure accurate measurement of energy flows.
It added that accurate reporting of transmission losses is critical to improving overall grid performance and supporting fair pricing within the electricity market.
NERC stressed that the new framework is expected to support better planning, improved infrastructure management, and stronger regulatory oversight across Nigeria’s electricity transmission system.
Data from the Nigerian Independent System Operator showed that the national average transmission loss factor was 8.71% in 2024, before dropping to 7.24% in 2025.
Despite the improvement, the figure remains above the 7% benchmark set under the Multi-Year Tariff Order (MYTO).
The order, dated 8 April 2026 and effective from 13 April 2026, is backed by provisions of the Electricity Act 2023, which empowers NERC to regulate efficiency and accountability in the electricity sector.
