The Nigerian Electricity Regulatory Commission (NERC) has directed the Nigerian Independent System Operator (NISO) to install smart meters at all boundary regional interconnection points by December 2026.
This, according to NERC, is to ensure transparency in curbing losses across the nation’s transmission network.
The directive, which is contained in Order No. NERC/2026/026, also mandates NISO to measure and document all energy flows through power transformers at transmission substations.
The Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate and enforce standards across the electricity market.
The Order, which takes effect from April 13, 2026, establishes a structured framework for tracking Regional Transmission Loss Factors (TLF) and strengthening accountability in grid operations.
Under the new regime, NISO is required to file quarterly reports on transmission losses to NERC on a regional basis, providing regulators with granular data to monitor performance and enforce compliance.
Also, the Commission has directed the Transmission Company of Nigeria (TCN) to submit, by July 2026, a comprehensive action plan detailing measures to reduce transmission losses to within the seven per cent benchmark approved under the Multi-Year Tariff Order (MYTO).
According to the order, TCN is also required to ensure that TLF across all transmission regions does not exceed 6.5 per cent by December 2026.
Industry data from NISO shows that while the national average TLF declined from 8.71 per cent in 2024 to 7.24 per cent in 2025, it remains above the regulatory threshold of 7 per cent.
“The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026 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) indicate that the national average TLF was 8.71% in 2024 but was reduced to 7.24% in 2025.
However, this still exceeds the 7% benchmark approved by NERC in the Multi-Year Tariff Order (MYTO).
“The Order dated 8 April 2026 establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
“Taking effect from 13 April 2026, the Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.
“Highlights and timelines in the Order include:
NISO to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows for each region of the transmission network.
“NISO to measure and document all energy flow of power transformers at transmission substations. NISO to file quarterly reports on TLF to NERC on a regional basis.
“TCN to file an action plan by July 2026 on the reduction of TLF to a value within the 7% approved benchmarks in the regions. TCN to ensure that TLF across transmission regions shall not exceed 6.5% by December 2026”, the Order reads in part.
THE WHISTLER can confirm that the national grid has experienced two disturbances this year and both occurred in January.
The first one occurred on January 23, 2026, when generation dropped to zero megawatts, affecting all distribution companies
Also, the second incident occurred on January 27, following a voltage disturbance and line tripping.
