The Nigerian Electricity Regulatory Commission has introduced new regulations aimed at reducing electricity transmission losses and improving transparency across the national grid.

The commission issued Order No. NERC/2026/026, which establishes a strengthened framework for the monitoring and reporting of Regional Transmission Loss Factors across Nigeria’s electricity transmission system.

Data from the Nigerian Independent System Operator showed that transmission losses averaged 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 April 8, 2026, and effective from April 13, 2026, is backed by the Electricity Act 2023, which empowers the regulator to ensure efficiency and accountability in the power sector.

Under the new directive, the Nigerian Independent System Operator (NISO) is required to install smart meters at all regional interconnection boundary points by December 2026 to accurately measure energy flows. It will also monitor energy at transmission substations and submit quarterly reports on transmission losses to the regulator.

The Transmission Company of Nigeria has been directed to submit an action plan by July 2026 to reduce losses to approved benchmarks and ensure that transmission losses across all regions do not exceed 6.5% by December 2026.

NERC said the objective of the order is to enhance transparency, improve monitoring, and ensure efficiency in electricity transmission management across the country.