From David Onuoja, Abuja
The Nigerian Electricity Regulatory Commission (NERC), has issued an Order No. NERC/2026/026 to improve transparency and efficiency in Nigeria’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).
In a press statement issued and signed by the Commission, said, data from the Nigerian Independent System Operator (NISO), indicated that the national average of TLF was 8.71% in 2024 but was reduced to 7.24% in 2025.
It However, added that this, still exceeds the 7% benchmark approved by NERC in the Multi Year Tariff Order (MYTO).
The Order dated 8 April 2026 establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
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The statement, said, it takes effect from 13 April 2026. The Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.
The Highlights and timelines in the Order include: that, NISO will install smart meters at all boundary regional interconnection points by December 2026, to accurately measure energy flows for each region of the transmission network.
NISO shall measure and document all energy flow of power transformers at transmission substations. And file quarterly reports on TLF to NERC on a regional basis.
Also, TCN shall file an action plan by July 2026 on the reduction of TLF to a value within the 7% approved benchmarks in the regions. And shall ensure that TLF across transmission regions shall not exceed 6.5% by December 2026.
This Order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting.
