The Nigerian Electricity Regulatory Commission (NERC) has issued a new directive introducing stricter monitoring and transparency requirements for Nigeria’s power transmission system, following a marginal improvement in grid efficiency that still falls short of regulatory benchmarks.
- +NERC tightens transmission oversight as grid losses fall to 7.24%
The directive, contained in Order No.
The directive, contained in Order No. NERC/2026/026 sets out new compliance measures aimed at reducing transmission losses and improving accountability across the electricity value chain.
The order comes as fresh data from the Nigerian Independent System Operator (NISO) shows that transmission losses declined from 8.71% in 2024 to 7.24% in 2025, remaining above the 7% threshold set under the Multi-Year Tariff Order (MYTO).
NERC said the new framework is designed to improve monitoring, data accuracy, and operational discipline within the transmission segment.
NERC said the reforms are necessary to strengthen transparency and improve system performance across the grid.
Under the new directive, NISO and TCN have been assigned specific operational and reporting responsibilities.
NERC has set a stricter target, requiring transmission losses not to exceed 6.5% by December 2026.
Nigeria’s transmission network has long struggled with technical inefficiencies and infrastructure limitations.
The latest directive builds on these efforts by introducing more granular, region-based oversight.
NERC said the new reporting structure is intended to improve regulatory visibility and enforcement capacity.
NISO stated that Nigeria’s prolonged power outages, affecting homes and businesses nationwide, are primarily due to inadequate gas supply to thermal power plants.
Nigeria’s power sector remains heavily dependent on gas-fired thermal plants, which account for over 70% of grid electricity, while hydropower contributes the balance. This makes the system particularly vulnerable to disruptions in gas supply.
