NERC Issues Rules to Cut Grid Losses and Expand Minigrids

The Nigerian Electricity Regulatory Commission has unveiled new regulations to enhance transparency, reduce transmission losses, and expand electricity access through minigrids, addressing persistent challenges in the country's power sector.

Issued on April 8, 2026, and effective from April 13, Order No. NERC/2026/026 targets inefficiencies in the national grid by mandating stricter reporting and monitoring of regional transmission loss factors. Data from the Nigerian Independent System Operator show that average losses fell from 8.71 percent in 2024 to 7.24 percent in 2025, yet the figure exceeds the seven percent benchmark established under the Multi-Year Tariff Order. Backed by the Electricity Act 2023, which empowers the commission to enforce efficiency, the order requires the system operator to install smart meters at all regional interconnection points by December 2026 for precise energy flow measurements. It also directs documentation of power flows at transmission substations and quarterly regional loss reports to the regulator.

The Transmission Company of Nigeria must submit an action plan by July 2026 to curb losses, aiming to limit them to no more than 6.5 percent...