The Nigerian Electricity Regulatory Commission has instructed the Transmission Company of Nigeria to cut electricity transmission losses on the national grid to 6.5 per cent on or before December 31, 2026, as part of a broader push to improve efficiency and accountability in power delivery.
In a directive issued on April 8, the regulator introduced a new reporting framework that requires closer monitoring of losses across different transmission regions within the Nigerian Electricity Supply Industry.
The move is intended to tighten oversight of how electricity is conveyed from generation points to distribution networks.
According to the commission, some level of energy loss is inevitable due to the physical nature of transmission lines and equipment. However, it noted that better maintenance, planning, and operational practices can significantly reduce avoidable wastage on the grid.
The regulator identified the Transmission Loss Factor as a critical benchmark for assessing grid performance. This metric tracks the gap between the volume of electricity injected into the transmission system and what is eventually delivered at exit points. Persistent losses above approved limits, it said, often signal ageing infrastructure, inefficient equipment, or weak operational controls.
Recent data from the Nigerian Independent System Operator showed that average transmission losses have remained above regulatory targets. National figures were put at 8.71 per cent in 2024 and 7.24 per cent in 2025, both exceeding the commission’s 7 per cent benchmark under the current tariff framework.
To address this, the system operator has been directed to deploy smart meters at regional interconnection boundaries before the end of the year to enable accurate tracking of energy inflows and outflows. It will also be required to measure electricity movement through transformers at transmission substations to ensure compliance with allowable loss standards.
The commission further mandated quarterly regional reports on transmission losses, beginning no later than June 30, 2026, using a prescribed template. In addition, TCN must submit a detailed corrective strategy by July 31, 2026, for any region where losses exceed the approved threshold.
The regulator warned that failure to meet these requirements could lead to sanctions in line with licensing conditions and existing regulations.
Meanwhile, the Managing Director of the Nigerian Independent System Operator, Abdu Bello, disclosed that transmission inefficiencies are costing the power sector between N5bn and N8bn every month. He said targeted operational measures introduced by the operator are already helping to stabilise the grid and reduce losses.
Bello spoke during the organisation’s first anniversary event in Abuja, where he highlighted reforms and milestones achieved since the operator began independent system management.
