The Nigerian Electricity Regulatory Commission (NERC) released Order No. NERC/2026/026 on 8 April 2026 to tighten reporting of Regional Transmission Loss Factors (TLF) on the national grid. The directive, which becomes operative on 13 April 2026, draws authority from the Electricity Act 2023 and sets a formal system for the Transmission Company of Nigeria (TCN) to disclose loss data by region.
Data from the Nigerian Electricity System Operator (NISO) show the national average TLF fell from 8.71 % in 2024 to 7.24 % in 2025, yet it still exceeds the 7 % ceiling stipulated in the Multi‑Year Tariff Order (MYTO). The new order requires NISO to fit smart meters at every regional interconnection point by December 2026 and to record energy flow through all transmission‑substation transformers. Quarterly regional TLF reports must be submitted to NERC.
TCN is tasked with presenting an action plan by July 2026 to bring regional TLF within the 7 % benchmark and to keep losses below 6.5 % by December 2026.
NERC's latest order places the Transmission Company of Nigeria under a strict deadline to cut transmission losses to under 6.5 % by the end of the year, a target that starkly contrasts with the 7.24 % loss recorded for 2025.
The move arrives after NISO's figures revealed that, despite a modest improvement, losses remain above the 7 % ceiling set in the Multi‑Year Tariff Order. By mandating smart‑meter installations at all regional interconnection points and quarterly loss reporting, the regulator is forcing greater transparency and operational discipline in a sector long plagued by inefficiency.
For consumers, tighter loss controls could translate into more reliable power supply and potentially lower tariffs, as utilities would have less need to recover wasted energy through higher charges. Households and small businesses in high‑loss regions stand to benefit most if the mandated reductions are achieved.
The order reflects a broader shift toward data‑driven oversight in Nigeria's electricity market, signalling that regulators are increasingly willing to impose concrete performance targets rather than rely on voluntary compliance.
