The Nigerian Electricity Regulatory Commission (NERC) has set a December 2026 deadline for the Transmission Company of Nigeria (TCN) to cut regional power losses to 6.5 per cent, while also issuing a new regulatory framework to accelerate mini-grid development across the country.
In an order dated 8 April 2026 (No. NERC/2026/026), the commission directed the TCN to bring transmission losses within the 7 per cent benchmark approved under the Multi-Year Tariff Order (MYTO) – and eventually below it. Data from the Nigerian Independent System Operator (NISO) showed that the national average Transmission Loss Factor (TLF) stood at 8.71 per cent in 2024, falling to 7.24 per cent in 2025. That figure, however, remains above the permitted threshold.
The TLF measures energy lost along transmission lines due to resistance, heat and system inefficiencies – meaning not all generated power reaches end users. Under the new order, which takes effect on 13 April 2026, NISO must install smart meters at all regional boundary interconnection points by December 2026, and file quarterly TLF reports on a regional basis. The TCN is also required to submit, by July 2026, an action plan to reduce losses to within the 7 per cent benchmark, with a firm target of 6.5 per cent across all transmission regions by December 2026.
“The order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting,” NERC said, citing its powers under the Electricity Act 2023.
New mini-grid regulation to boost rural electrification
Separately, NERC issued the Mini-Grid Regulation 2026 (NERC-R-001-2026), providing a comprehensive framework for mini-grid development, operation and regulation nationwide. The regulation aims to expand electricity access in unserved and underserved areas while ensuring safety, fairness and investment protection.
Key provisions include: isolated mini-grids operating independently of distribution company (Disco) networks, capped at 5MW; and interconnected mini-grids linked to existing distribution networks, up to 10MW. Systems below 100kW may be registered, but those above 100kW require a NERC permit, which will be processed within 30 business days.
Operators must submit annual reports for mini-grids under 1MW, and quarterly reports for those above 1MW. NERC will conduct ongoing monitoring and may publish sector data. The regulation aligns with the Electricity Act 2023 and accommodates state-level regulation where applicable.
NERC stated that the new rules are intended to accelerate rural electrification, attract private investment, ensure fair tariffs and consumer protection, and promote coordination between mini-grid developers and Discos.
