NERC Orders Crackdown on Electricity Transmission Losses
The Nigerian Electricity Regulatory Commission (NERC) has ordered the Transmission Company of Nigeria (TCN) to slash regional power losses to 6.5% by the end of 2026. Under the new directive, which took effect today, the regulator is moving away from national averages to hold individual regions accountable for energy wasted in transit. Current data reveals that transmission inefficiencies cost the sector between N5 billion and N8 billion every month. This financial bleed remains a primary hurdle to the industry’s long-term solvency.
Grid efficiency has shown a slow but steady improvement over the last two years. The national transmission loss factor dropped from 8.71% in 2024 to roughly 7.05% today. Despite this progress, the figure remains above the 7% benchmark previously set by the regulator. The new 6.5% cap is an attempt to force the system toward international standards. It reflects a tougher regulatory stance following the unbundling of TCN and the 2025 creation of the Nigerian Independent System Operator (NISO).
Accountability will now be enforced through technology rather than mere paperwork. NISO must install smart meters at every regional interconnection point by December 2026 to provide real-time data on energy flows. This transparency is intended to pinpoint exactly where electricity is disappearing—whether through technical decay or administrative lapses. Quarterly reports for each region must be submitted to NERC, leaving managers with nowhere to hide poor performance.
TCN has until July 2026 to present a comprehensive roadmap for achieving these targets. Meeting the new threshold will require more than just maintenance; it demands a significant technological leap. Industry experts argue that the grid cannot reach these goals without fully operational supervisory control and data acquisition (SCADA) systems. While the African Development Bank has funded new transformers, the human element of operational discipline remains a variable.
The directive arrives at a time when the national grid remains notoriously temperamental. Several collapses have already been recorded this year, mocking the record peak of 5,801MW achieved in early 2025. Reducing transmission losses is vital, but it only solves one part of a three-sided problem involving generation and distribution. If the power cannot reach the final consumer efficiently, the entire value chain remains a loss-making enterprise.
This order signals that the era of vague national statistics is over. By focusing on regional metrics, NERC is applying pressure where it is most needed—at the operational level. If TCN fails to meet these stricter caps, it faces a future of regulatory penalties and continued financial instability. For a nation desperate for reliable light, every percentage point of electricity saved in transmission is a victory.