The Nigerian Electricity Regulatory Commission (NERC) has rolled out new regulations aimed at reducing electricity transmission losses and improving efficiency across the country’s power grid.
The new directive, captured in Order No. NERC/2026/026, sets out a stricter framework for monitoring and reporting Regional Transmission Loss Factors within Nigeria’s transmission network.
Data from the Nigerian Independent System Operator (NISO) indicates that average transmission losses dropped from 8.71 per cent in 2024 to 7.24 per cent in 2025. Despite the decline, the figure remains above the 7 per cent benchmark outlined in the Multi-Year Tariff Order.
According to NERC, the new framework is designed to address this shortfall and enhance overall performance in the electricity market. The order, issued on April 8, 2026, came into effect on April 13, 2026, in line with provisions of the Electricity Act 2023.
Under the guidelines, NISO is required to install smart meters at all regional interconnection points by December 2026 to ensure accurate tracking of electricity flows. The operator must also monitor energy movement at transmission substations and submit quarterly reports detailing regional transmission losses.
In addition, NISO is expected to present a comprehensive action plan by July 2026, outlining strategies to reduce losses within approved limits. The Commission has set a nationwide target of keeping transmission losses at or below 6.5 per cent by December 2026.
NERC said the measures are intended to boost transparency, strengthen oversight, and improve the management of the national grid. It emphasised that reliable data reporting is key to enhancing system performance and ensuring fair electricity pricing.
Alongside the new transmission framework, the Commission also introduced the Mini-Grid Regulations 2026 to expand electricity access, particularly in underserved communities.
The policy provides guidelines for both isolated mini-grids operating independently of distribution companies with capacities of up to 5MW, and interconnected mini-grids linked to existing networks with capacities of up to 10MW.
Under the regulation, mini-grids below 100KW must be registered, while those above that threshold are required to obtain permits. NERC also disclosed that permit applications for qualified projects will be processed within 30 business days.
The new rules also introduce updated reporting requirements, with operators of mini-grids below 1MW expected to file annual reports, while those above 1MW must submit quarterly reports.
NERC noted that it will maintain close monitoring of the sector and may publish industry data to promote transparency and accountability. It added that the reforms are expected to attract investment, improve infrastructure, and accelerate rural electrification efforts nationwide.
