The Nigerian Electricity Regulatory Commission said it has introduced new regulations to reduce electricity transmission losses and improve transparency across the national grid.
According to the Commission, 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).
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.
According to a post on the commission’s X account on Monday, “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.”
The Company noted that it has been directed to submit an action plan by July 2026 to reduce losses to within approved benchmarks and ensure that transmission losses across all regions do not exceed 6.5 per cent by December 2026.
“Taking effect from April 13 2026, the Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, 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 stressed that the new framework is expected to support better planning, improved infrastructure management, and stronger regulatory oversight across Nigeria’s electricity transmission system.
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The Commission has also issued the Mini-Grid Regulations 2026, introducing a new framework to guide the development, operation, and regulation of mini-grid systems across Nigeria.
The regulation, numbered NERC-R-001-2026, is aimed at expanding electricity access, particularly in unserved and underserved communities, while ensuring safety, fair tariffs, and protection for investors in the sector.
The framework also strengthens coordination between mini-grid developers, operators, distribution companies, and host communities in line with the Electricity Act 2023.
The new guidelines apply to isolated mini-grids, which operate independently of distribution companies (DisCos), with capacities of up to 5MW, interconnected mini-grids, which are linked to existing distribution networks, with capacities of up to 10MW
Mini-grids below 100KW are required to be registered, while those above 100KW must obtain a permit from NERC.
The commission said permits will be processed within 30 business days of application.
“Operators are expected to comply with new reporting obligations depending on capacity. Mini-grids below 1MW will submit annual reports, while those above 1MW must submit quarterly reports,” NERC said.
NERC also stated that it will carry out ongoing monitoring and may publish industry data to improve transparency and accountability in the sector.
In announcing the new framework, NERC said the regulation is designed to provide clarity and encourage investment in Nigeria’s mini-grid sector.
“The Mini-Grid Regulations 2026 provide a clear and structured framework for operators, ensuring safety, accountability, and improved electricity access in underserved communities,” the commission said.
NERC noted that the policy is expected to accelerate rural electrification and support private sector participation in expanding power supply.
It added that the new regulations are part of broader efforts to improve electricity access, strengthen regulation, and ensure sustainable energy development across Nigeria.
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