The Nigerian Electricity Regulatory Commission (NERC) yesterday announced that it has introduced new regulations to reduce electricity transmission losses and improve transparency across the national grid.

It stated that the regulation is premised on Order No. NERC/2026/026, which establishes a strengthened framework for the reporting and monitoring of Regional Transmission Loss Factors across Nigeria’s electricity transmission network.

Data from the Nigerian Independent System Operator showed that the national average transmission loss factor was 8.71% in 2024, before dropping to 7.24% in 2025.

Despite the improvement, the figure remains above the 7% benchmark set under the Multi-Year Tariff Order (MYTO).

According to NERC, the order, dated 8 April 2026 and effective from 13 April 2026, is backed by provisions of the Electricity Act 2023, which empowers NERC to regulate efficiency and accountability in the electricity sector.

The order according to a post on the commission’s X account said: “Under the new order, the Nigerian Independent System Operator (NISO) is required to install smart meters at all regional interconnection boundary points by December 2026 to ensure accurate measurement of energy flows.

“NISO is also expected to measure and document energy flow at power transformers in transmission substations and submit quarterly regional reports on transmission losses to the regulator”