NERC Mandates 6.5% Transmission Loss Limit for Nigeria’s Grid by December 2026
The Nigerian Electricity Regulatory Commission has directed the Transmission Company of Nigeria to reduce grid losses to no more than 6.5% by December 2026 under Order No. NERC/2026/026. Transmission losses improved from 8.71% in 2024 to 7.24% in 2025 but still exceed the 7% benchmark set by the Multi-Year Tariff Order. The directive, effective 13 April 2026, is backed by the Electricity Act 2023 and introduces enhanced regional reporting requirements. The Nigerian Independent System Operator must install smart meters at all interconnection points and submit quarterly loss reports. TCN is required to submit an action plan by July 2026 detailing steps to meet the new transmission loss target.
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