NERC issues order, cuts regional transmission loss target from 7.24% to 7%
The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026, reducing the Regional Transmission Loss Factor operated by the Transmission Company of Nigeria (TCN) from 7.24% in 2025 to align with the 7% benchmark under the Multi-Year Tariff Order (MYTO), with a target of lowering it further to 6.5% by December 2026.
The directive was disclosed in a public notice accompanying the Commission’s Order on reporting regional electricity transmission loss factors dated April 9, 2026, and obtained on Monday.
According to the Commission, the Order is expected to improve transparency and efficiency in Nigeria’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).
Data from the Nigerian Independent System Operator (NISO) showed the national average TLF declined from 8.71% in 2024 to 7.24% in 2025—still above the 7% MYTO benchmark—prompting the establishment of a formal reporting framework effective April 13, 2026, under the Electricity Act 2023.
The Commission has therefore issued directives for NISO to install smart meters at regional boundaries, measure and document transformer energy flows, and file quarterly reports.
The TCN is also expected to submit a loss-reduction action plan by July 2026 and ensure compliance with a 6.5% cap by year-end.
NERC said, “NISO to file quarterly reports on TLF to NERC on a regional basis” and “TCN to ensure that TLF across transmission regions shall not exceed 6.5% by December 2026.”
Nigeria, through NISO, is already exporting electricity to Benin, Togo, and Niger under the WAPP framework, while the TCN supports regional operations by maintaining transmission infrastructure, including power lines and substations.
As WAPP advances toward Phase 2 of its regional electricity market, there is increasing emphasis on real-time system data, grid stability for cross-border electricity flows, and improved accuracy in market settlements across participating countries.
