By Mary Izuaka

 

The Nigerian Electricity Regulatory Commission (NERC) has issued an Order to improve transparency and efficiency in Nigeria’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).

In a public notice on Monday, the commission said the Order No. NERC/2026/026, dated 8 April 2026, establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).

According to the commission, the Order which takes effect from 13 April, is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.

Why the Order

According to NERC, data from the Nigerian Independent System Operator (NISO) indicate that the national average TLF was 8.71 per cent in 2024 but was reduced to 7.24 per cent in 2025.

However, NERC said this still exceeds the 7 per cent benchmark it approved in the Multi Year Tariff Order (MYTO).

“The Order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting,” the commission said.

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Highlights and timelines

In the Order, NERC directed NISO to 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 to measure and document all energy flow of power transformers at transmission substations and to file quarterly reports on TLF to NERC on a regional basis.

“TCN to file an action plan by July 2026 on the reduction of TLF to a value within the 7 per cent approved benchmarks in the regions.

“TCN to ensure that TLF across transmission regions shall not exceed 6.5 per cent by December 2026,” it said.