Amanze Chinonye
The Nigerian Electricity Regulatory Commission (NERC) has issued a new directive aimed at strengthening transparency and operational efficiency in Nigeria’s electricity transmission network, Prime Business Africa reports.
The directive, Order No. NERC/2026/026, introduces a structured framework for the reporting of Regional Transmission Loss Factors (TLF), a key metric used to assess energy losses across the national grid.
According to data from the Nigerian Independent System Operator (NISO), the country’s average TLF declined from 8.71 per cent in 2024 to 7.24 per cent in 2025. Despite the improvement, the figure remains above the 7 per cent benchmark set by NERC under the Multi-Year Tariff Order (MYTO).
Join our WhatsApp ChannelThe Order, dated April 8, 2026, and effective from April 13, 2026, is issued pursuant to the provisions of the Electricity Act 2023, which empowers the commission to regulate and monitor performance across the electricity market.
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Under the new framework, NISO is required to deploy smart meters at all regional boundary interconnection points by December 2026 to ensure accurate measurement of energy flows across transmission regions. The system operator is also mandated to document energy flows through power transformers at transmission substations and submit quarterly regional TLF reports to NERC.
In addition, the Transmission Company of Nigeria (TCN) has been directed to submit a comprehensive action plan by July 2026 outlining measures to reduce transmission losses to within the approved benchmark. The company is further required to ensure that transmission losses across all regions do not exceed 6.5 per cent by December 2026.
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NERC said the Order is part of broader efforts to enhance accountability in transmission operations and improve overall grid performance through data-driven monitoring and reporting mechanisms.
The move is expected to provide clearer insights into regional inefficiencies within the transmission network while supporting policy interventions aimed at reducing technical and commercial losses in Nigeria’s power sector.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
