The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026 to reduce Regional Electricity Transmission Loss Factors (TLF).
The Order dated 8 April 2026 establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
The Order was aimed at improving transparency and efficiency in Nigeria’s power grid through enhanced reporting of the TLF.
NERC said the 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, it said the 7.24% still exceeded the 7% benchmark approved by the Commission in the Multi Year Tariff Order (MYTO).
NERC said the Order, which takes effect from 13 April 2026, is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.
Going by the Order, NISO is expected to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows for each region of the transmission network.
NISO is also 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.
The Order mandated TCN to file an action plan by July 2026 on the reduction of TLF to a value within the 7% approved benchmarks in the regions.
TCN is also expected to ensure that TLF across transmission regions does not exceed 6.5% by December 2026.
The Order, according to NERC, was designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting.
