Nigeria’s electricity transmission network recorded an estimated ₦2.61 billion in losses during the first quarter of 2026 after failing to meet the transmission efficiency target set by the Nigerian Electricity Regulatory Commission (NERC).
According to NERC’s first-quarter 2026 report, the Transmission Company of Nigeria (TCN) posted an average Transmission Loss Factor (TLF) of 7.96 per cent, exceeding the regulatory benchmark of 7.0 per cent under the Multi-Year Tariff Order (MYTO).
The Transmission Loss Factor measures the proportion of electricity generated that is lost within the transmission network or consumed at transmission facilities before reaching electricity distribution companies (DisCos) or export customers. A higher TLF indicates lower transmission efficiency.
NERC estimated that the financial impact of the underperformance reached ₦2.61 billion, comprising about ₦257.9 million linked directly to transmission losses and ₦2.35 billion in payments owed to electricity generation companies (GenCos). The figure does not include additional penalties that may arise from service level agreements with DisCos.
Although the recorded loss was lower than the ₦3.13 billion reported in the final quarter of 2025, the regulator said transmission performance deteriorated during the review period, with the TLF increasing from 7.27 per cent in the previous quarter.
The commission explained that the transmission company cannot recover the cost of inefficient losses from electricity consumers, meaning the excess losses reduce its revenue while still requiring payment for electricity generated but not delivered.
Beyond transmission losses, the report also highlighted a decline in grid stability. Average system frequency fluctuated between 49.11Hz and 50.72Hz, outside the preferred operating range of 49.75Hz to 50.25Hz, indicating weaker frequency control compared with the previous quarter.
NERC further reported continued voltage instability across the transmission network. Average operating voltage fell below the minimum prescribed level at certain periods and also exceeded the upper limit, raising concerns over equipment damage and power quality.
The regulator warned that persistent voltage fluctuations, including dips, spikes and brownouts, could damage industrial equipment, increase operating costs for businesses and encourage more consumers to rely on alternative power sources instead of the national grid.
The findings underscore ongoing operational challenges within Nigeria’s electricity transmission system despite efforts to improve grid performance and strengthen power infrastructure.
