Nigeria’s electricity regulator has unveiled new rules aimed at cutting transmission losses and improving oversight across the national grid. The Nigerian Electricity Regulatory Commission (NERC) said the measures, introduced under Order No. NERC/2026/026, will strengthen reporting and monitoring of Regional Transmission Loss Factors—an issue that has long hampered efficiency in the country’s power sector.
Official data shows that transmission losses dropped from an average of 8.71 per cent in 2024 to 7.24 per cent in 2025. While this marks an improvement, the figure remains above the 7 per cent benchmark set under the Multi-Year Tariff Order (MYTO). The new framework, which takes effect from 13 April 2026, is backed by the Electricity Act 2023, giving NERC authority to enforce efficiency and accountability.
Under the order, the Nigerian Independent System Operator (NISO) must install smart meters at all regional interconnection boundary points by December 2026 to enable accurate measurement of energy flows. NISO is also required to monitor and document energy flow at power transformers in transmission substations and submit quarterly regional loss reports to the regulator. By July 2026, NISO must present a plan to reduce losses to within approved benchmarks, with a target of no more than 6.5 per cent by the end of the year.
NERC says the move is designed to improve transparency, support better infrastructure management, and underpin fair pricing across the electricity market. Accurate loss reporting, it added, is essential for boosting grid performance and strengthening regulatory oversight.
Separately, NERC has introduced the Mini-Grid Regulations 2026 (NERC-R-001-2026), a new framework to guide the development, operation, and regulation of mini-grid systems—particularly in unserved and underserved communities. The rules apply to isolated mini-grids with capacities up to 5MW and interconnected mini-grids linked to distribution networks with up to 10MW capacity.
Mini-grids below 100kW must be registered, while those above 100kW require a permit, which NERC has pledged to process within 30 business days. Reporting obligations vary by size: annual reports for systems below 1MW, quarterly for larger ones. NERC will carry out ongoing monitoring and may publish industry data to enhance transparency.
The regulator says the new rules are intended to encourage private investment, ensure safety, and protect consumers, while accelerating rural electrification. Together, the transmission and mini-grid reforms form part of broader efforts to expand electricity access, strengthen regulation, and support sustainable energy development across Nigeria.
