Nigeria's Power Sector Faces N2.61bn Loss in Q1 2026

In the first quarter of 2026, Nigeria's power sector incurred costs of N2.61 billion due to transmission losses, as reported by the Nigerian Electricity Regulatory Commission (NERC). The transmission loss factor (TLF) rose to 7.96%, surpassing the regulatory benchmark of 7.00%.

This increase signifies that for every 100 megawatt-hours of energy injected into the grid, 7.96 megawatt-hours were undelivered to distribution companies. The report indicated that the cost comprised N257.91 million attributed to the transmission loss factor and N2.35 billion in penalties payable to power generation companies.

The TLF for the first quarter represented a 0.69 percentage point increase from the previous quarter. The report also noted a decline in the stability of the national grid, with fluctuations in system frequency affecting power quality, particularly for heavy-duty industrial machinery.

The average daily system frequency fell to 49.11 Hz, while the upper frequency rose to 50.72 Hz, indicating instability in the transmission network.