NERC Implements Stricter Oversight as Grid Losses Drop

The Nigerian Electricity Regulatory Commission (NERC) has issued new directives to enhance oversight of Nigeria's power transmission system, following a decline in grid losses from 8.71% in 2024 to 7.24% in 2025. This remains above the 7% threshold established in the Multi-Year Tariff Order (MYTO).

The directive, identified as Order No. NERC 2026/026, introduces compliance measures aimed at reducing transmission losses and improving accountability across the electricity value chain.

The Nigerian Independent System Operator (NISO) reported this decline, while NERC's new framework is designed to improve data accuracy and operational discipline within the transmission segment. The directive also assigns specific operational reporting responsibilities to NISO and the Transmission Company of Nigeria (TCN), setting a stricter target to ensure transmission losses do not exceed 6.5% by December 2026.

Nigeria's transmission network has historically struggled with technical inefficiencies and infrastructural limitations, making these reforms critical for enhancing system performance.