NERC Orders Enhanced Transmission Loss Reporting in Nigeria

The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC 2026 026 to improve transparency and efficiency in the reporting of transmission losses within Nigeria’s power grid.

The order aims to reduce the national average Transmission Loss Factor (TLF) from 8.71% in 2024 to 7.24% in 2025, and below 7% by 2026. The TLF measures energy lost during transmission and is crucial for ensuring that electricity generated reaches end users effectively.

The order, effective from April 13, 2026, establishes a formal framework for reporting transmission losses across regional transmission companies, particularly the Transmission Company of Nigeria (TCN). NERC has mandated the Nigerian Independent System Operator (NISO) to install smart meters by December 2026 to accurately measure energy flow and to document quarterly reports on TLF.

Additionally, TCN is required to submit an action plan by July 2026 to ensure TLF values do not exceed 6.5% by December 2026, thereby strengthening the accountability of transmission operations.