The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to ensure transparency in reporting the Regional Electricity Transmission Loss Factor. In a public notice posted on its official platform on Monday, the order, contained in No. NERC/2026/026 is aimed at improving transparency and efficiency in Nigeria’s power grid.
NERC disclosed that the order is supported by the provisions of the Electricity Act 2023, which empowers the commission to regulate, monitor, and ensure efficiency in the power sector.
According to the statement, data from the Nigerian Independent System Operator (NISO) showed that the national average TLF was 8.71% in 2024 but decreased to 7.24% in 2025. The report surpasses 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), taking effect from 13 April 2026.
The notice contains directives issued to NISO and TCNs. NISO is instructed to install smart meters at all boundary regional interconnection points by December 2026, measure and document all energy flows of power transformers at transmission substations, and file quarterly reports on TLF to NERC on a regional basis.
TCN is required to submit an action plan by July 2026 for reducing TLF to a value within the 7% approved benchmark in the regions and ensure that TLF across transmission regions does not exceed 6.5% by December 2026.
NERC concluded that the order aims to enhance accountability in transmission operations and improve grid performance through structured loss reporting.
