Lagos, Nigeria – The Nigerian Electricity Regulatory Commission (NERC) has issued a new directive introducing stricter monitoring and transparency requirements for the power transmission system, following a marginal improvement in grid efficiency that remains above the regulatory benchmark of 7 percent.
Okay News reports that transmission losses declined from 8.71 percent in 2024 to 7.24 percent in 2025, according to fresh data from the Nigerian Independent System Operator. The new order, No. NERC/2026/026, sets compliance measures aimed at reducing losses and improving accountability across the electricity value chain.
Under the directive, the system operator must deploy smart meters at all regional transmission interconnection points by December 2026. It must also measure and document energy flows across all transmission substations and submit quarterly loss reports to NERC, broken down by region. The Transmission Company of Nigeria is required to submit an action plan by July 2026 detailing measures to reduce losses to within the 7 percent benchmark, including technical upgrades and maintenance strategies.
NERC has set a stricter target, requiring transmission losses not to exceed 6.5 percent by December 2026. The commission noted that the directive is backed by provisions of the Electricity Act 2023 and is necessary to strengthen transparency and improve system performance.

