NERC Launches Framework to Reduce Power Losses in Nigeria

The Nigerian Electricity Regulatory Commission (NERC) has unveiled a new regulatory framework designed to reduce electricity transmission losses and enhance transparency across Nigeria's national grid. This initiative is anchored by Order No.

NERC 2026 026, which establishes a strengthened framework to monitor regional transmission loss factors. According to data from the Nigerian Independent System Operator (NISO), the national average transmission loss factor was 8.71% in 2024, with a projected drop to 7.24% in 2025.

The new order aims to close the gap and improve overall efficiency in the electricity market, with a target to reduce transmission losses to not exceed 6.5% by December 2026. The framework will take effect on April 13, 2026, following provisions in the Electricity Act 2023 that empower NERC to regulate and monitor efficiency within the power sector.

Additionally, NERC announced the release of mini-grid regulations to expand electricity access, particularly in underserved communities.