The Nigerian Electricity Regulatory Commission (NERC) has directed the Transmission Company of Nigeria (TCN) to reduce transmission losses to 6.5 per cent across all regions by December 2026.
The directive was issued under Order No. NERC/2026/026 as part of efforts to improve efficiency and reliability within Nigeria’s power sector.
NERC noted that transmission losses have declined in recent years, with the Transmission Load Factor dropping from 8.71 per cent in 2024 to 7.24 per cent in 2025. Despite the improvement, the figure still exceeds the 7 per cent benchmark set under the Multi-Year Tariff Order.
The Commission said the new target aims to further strengthen grid performance and ensure more efficient power distribution nationwide.
As part of the directive, the Nigerian Independent System Operator is required to install smart meters at all regional interconnection points by December 2026 to improve accuracy in measuring energy flows.
It will also be responsible for documenting energy flow across transmission substations and submitting quarterly reports on transmission losses to NERC.
TCN has been mandated to submit a detailed action plan by July 2026 outlining how it intends to meet the approved transmission loss threshold.
According to NERC, the order establishes a structured framework for monitoring and reporting transmission losses, with the goal of improving accountability and operational efficiency across the national grid.
