Joseph Bakare
The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026 with the aim to improve transparency and efficiency in Nigeria’s power grid through enhanced reporting of regional Transmission Loss Factors (TLF).
A NERC statement said data from the Nigerian Independent System Operator (NISO) indicate that the national average TLF was 8.71 per cent in 2024 but was reduced to 7.24 per cent in 2025.
However, it noted that this still exceeds the 7 per cent benchmark approved by NERC in the Multi Year Tariff Order (MYTO).
Transmission Loss Factor is a technical parameter used in electricity systems to account for the energy lost when power is transmitted over the grid from generators to consumers. In simple terms, not all the electricity generated actually reaches the end user.
Some of it is lost along transmission lines due to resistance, heat, and system inefficiencies. The TLF measures this loss and adjusts the amount of electricity that is considered delivered.
The Order dated April 8, 2026, NERC said, establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
Taking effect from April 13, 2026, the Order, according to NERC, is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.
According to NERC, some of the highlights and timelines in the Order include that: NISO should install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows for each region of the transmission network.
It also instructed NISO to measure and document all energy flow of power transformers at transmission substations and file quarterly reports on TLF to NERC on a regional basis.
Besides, NERC urged the TCN to file an action plan by July 2026 on the reduction of TLF to a value within the 7 per cent approved benchmarks in the regions. It stated that TCN will further ensure that TLF across transmission regions shall not exceed 6.5 per cent by December 2026.
“The Order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting,” the NERC statement said.
Also, the commission has issued: “The Mini Grid Regulation 2026”, which provides a comprehensive framework for the development, operation, and regulation of mini-grids nationwide.
“The Nigerian Electricity Regulatory Commission (NERC) has issued the Mini-grid regulations 2026. This regulatory document, numbered NERC-R-001-2026, provides a comprehensive framework for the development, operation, and regulation of mini-grids in Nigeria. It aims to expand electricity access, especially in unserved and underserved areas, while ensuring safety, fairness, and investment protection.
“Highlights of the regulation include: It applies to isolated mini-grids that operate independently of Disco networks, up to 5 megawatts (MW); and interconnected mini-grids which are connected to and coordinated with existing distribution networks, up to 10MW.
“Covers developers, operators, distribution companies, and host communities. Aligns with the Electricity Act 2023 and accommodates state-level regulation where applicable. Mini-grids below 100 kilowatts (kW) can be registered, but those above 100kW require a permit from NERC,” NERC added.
NERC stressed that it grants permits through an application process within 30 business days, pointing out that operators must submit annual reports for mini-grids below 1MW, and quarterly reports for those above 1MW.
“NERC conducts ongoing monitoring and may publish sector data. The regulation aims to accelerate rural electrification, attract private investment, ensure fair tariffs and consumer protection, as well as promote coordination between mini-grid developers and Discos,” NERC added