3, April 2026
The Nigerian Electricity Regulatory Commission said it has introduced new regulations to reduce electricity transmission losses and improve transparency across the national grid.
The The Nigerian Electricity Regulatory Commission (NERC )said it has introduced new regulations to reduce electricity transmission losses and boost transparency in Nigeria’s grid.
The regulation is based on Order No. NERC/2026/026, which sets up a framework for monitoring and reporting Regional Transmission Loss Factors in Nigeria’s electricity grid.
According to Nigerian Independent System Operator data, transmission loss factor dropped from 8.71% in 2024 to 7.24% in 2025, still above the 7% MYTO benchmark. NERC’s new order (NERC/2026/026, effective April 13, 2026) aims to improve efficiency, backed by the Electricity Act 2023.
According to a post on the commission’s X account on Monday, “Under the new order, the Nigerian Independent System Operator has directed NISO to install smart meters at regional interconnection points by Dec 2026 for accurate energy flow measurement.
Report says NISO will also measure energy flow at power transformers and submit quarterly reports on transmission losses to NERC has been directed to submit an action plan by July 2026 to reduce transmission losses to 6.5% or less by Dec 2026.
The new order kicks off April 13, 2026, and is backed by the Electricity Act 2023, giving NERC power to regulate and ensure efficiency in the electricity market.
“The objective of this order is to enhance transparency, improve monitoring, and ensure efficiency in the management of transmission losses across the grid,” the commission said.
It added that accurate reporting of transmission losses is critical to improving overall grid performance and supporting fair pricing within the electricity market.”
NERC’s new framework aims to boost planning, infrastructure management, and regulatory oversight in Nigeria’s electricity transmission system. Key highlights of the Mini-Grid Regulations 2026 include:
Applicability:
Isolated mini-grids (up to 5MW): Interconnected mini-grids (up to 10MW)
Registration/P permit: Below 100KW: Register
Above 100KW: Obtain permit (processed within 30 days)
Reporting:
Below 1MW: Annual reports
Above 1MW: Quarterly reports
Objectives: Expand electricity access, ensure safety, fair tariffs, and protect investors
Impact: Accelerate rural electrification, support private sector participation, and improve transparency
NERC aims to encourage investment and improve electricity access in underserved communities through this regulation.
