Nigeria’s power sector regulator has rolled out a fresh set of rules targeting persistent inefficiencies in electricity transmission, as part of efforts to tighten oversight and improve grid performance nationwide.
The Nigerian Electricity Regulatory Commission (NERC) announced the new framework, which focuses on reducing energy losses during transmission while boosting transparency across the national grid system.
Under the directive, tagged Order No. NERC/2026/026, the commission introduced stricter mechanisms for tracking and reporting transmission loss factors across different regions.
The move is aimed at strengthening accountability and ensuring operators adhere to performance benchmarks.
Recent figures from the Nigerian Independent System Operator (NISO) show some progress, with the country’s average transmission loss dropping from 8.71 percent in 2024 to 7.24 percent in 2025.
However, the figure still falls short of the 7 percent threshold outlined in the Multi-Year Tariff Order.
The regulation, issued on April 8 and taking effect from April 13, 2026, draws its authority from the Electricity Act 2023, which empowers NERC to enforce efficiency and discipline within the power market.
As part of the new requirements, NISO has been directed to deploy smart meters at all regional interconnection points by December 2026.
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The system operator is also expected to track electricity flows at substations and submit quarterly reports detailing transmission losses.
Meanwhile, the Transmission Company of Nigeria (TCN) has been tasked with presenting a detailed loss-reduction strategy by July 2026.
The plan must outline how the company intends to bring transmission losses across all regions down to a maximum of 6.5 percent before the end of the year.
NERC said the reforms are designed to strengthen monitoring structures, improve operational efficiency and ensure more accurate data across the grid.
The commission added that reliable reporting will play a key role in supporting infrastructure planning, enhancing system management and promoting fair electricity pricing for consumers.