NERC transmission loss directive orders TCN to cut grid losses to 6.5% by 2026 to improve efficiency and stability in Nigeria’s power sector

The Nigerian Electricity Regulatory Commission (NERC) and the Transmission Company of Nigeria (TCN) in Abuja on Monday, April 13, 2026, confirmed a new regulatory directive aimed at significantly reducing inefficiencies in the national power grid, as the regulator ordered TCN to cut transmission losses to not more than 6.5 per cent by December 2026.

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The directive, contained in Order No. NERC/2026/026 and published on the Commission’s official X handle, forms part of ongoing reforms to improve efficiency and stability within the Nigerian Electricity Supply Industry.

Under the new framework, the NERC transmission loss directive sets a stricter performance benchmark for grid operators, building on previous targets under the Multi-Year Tariff Order framework, which had set allowable losses at around 7 per cent.

Data from the Nigerian Independent System Operator shows that transmission losses have gradually improved in recent years, declining from 8.71 per cent in 2024 to 7.24 per cent in 2025.

Despite this progress, the regulator said the current level remains above acceptable efficiency thresholds and requires further corrective action.

The order, issued on April 8, 2026, also introduces enhanced reporting requirements for regional Transmission Loss Factors across the national grid operated by the Transmission Company of Nigeria.

It is expected to improve transparency and accountability in power transmission operations.

As part of implementation measures, the Nigerian Independent System Operator has been directed to install smart meters at all regional interconnection points by December 2026.

The initiative is aimed at improving accuracy in measuring energy flows and identifying system inefficiencies across transmission corridors.

The system operator is also required to monitor and document energy flow at transmission substations and submit quarterly reports detailing regional transmission losses to the Commission.

In addition, the Transmission Company of Nigeria must submit an action plan by July 2026 outlining practical steps to ensure transmission losses are reduced to within approved regulatory benchmarks.

The NERC transmission loss directive is grounded in provisions of the Electricity Act 2023, which empowers the regulator to enforce efficiency standards and ensure accountability across the power sector value chain.

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NERC stated that the new measures are designed to strengthen operational discipline within the transmission network and improve overall grid reliability, with a focus on delivering more stable electricity supply nationwide.