The Nigerian Electricity Regulatory Commission (NERC), has directed the Transmission Company of Nigeria (TCN) to cut national grid transmission losses to 6.5% by the end of 2026, aiming to boost efficiency and accountability in the electricity network.
In its April 8 order, the regulator introduced a regional reporting framework for transmission loss factors (TLF), quoting: “TCN must ensure TLF across all NESI regions stays below 6.5% by December 31, 2026, per the 2024 Multi-Year Tariff Order.”
Transmission losses stem from energy wasted in lines, transformers, and operations—unavoidable to some degree but reducible through better planning and maintenance. TLF gauges the gap between energy input and output, signaling grid health; high levels signal issues like old equipment or poor practices.
NISO data showed averages of 8.71% in 2024 and 7.24% in 2025, topping the 7% benchmark. To tackle this, NERC ordered smart meters at regional borders and transformer energy tracking by year-end, plus quarterly TLF reports starting June 30, 2026. TCN must submit a fix-it plan by July 31 for problem areas, with penalties for non-compliance.
NISO’s MD, Abdu Bello, noted monthly losses of N5bn–N8bn from inefficiencies, highlighting progress via reforms shared at their Abuja anniversary event.
