The Nigerian Electricity Regulatory Commission (NERC) has directed the Transmission Company of Nigeria (TCN) to ensure that Transmission Load Factor (TLF) across all transmission regions does not exceed 6.5 per cent by December 2026.
The directive was contained in Order No. NERC/2026/026, published on the commission’s official X handle.
The order stated: “TCN to ensure that TLF across transmission regions shall not exceed 6.5% by December 2026.”
NERC noted that transmission losses in the Nigerian Electricity Supply Industry (NESI) declined by 1.47 per cent within one year, based on data from the Nigerian System Operator (NISO). It stated that the national average TLF reduced from 8.71 per cent in 2024 to 7.24 per cent in 2025.
The commission explained that despite the improvement, the current level still exceeds the seven per cent benchmark approved under the Multi Year Tariff Order (MYTO).
It said the order, dated 8 April 2026, establishes a formal framework for improved reporting of Regional Transmission Loss Factors (TLF) across the transmission network operated by TCN.
The order also mandates the Nigerian Independent System Operator (NISO) to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows across the transmission system.
It further directed NISO to measure and document energy flow at all power transformer points in transmission substations and submit quarterly reports on TLF to NERC on a regional basis.
TCN is also required to submit an action plan by July 2026 detailing how it intends to reduce TLF to within the approved seven per cent benchmark across all regions.
NERC said the measures are aimed at improving transparency, strengthening accountability in transmission operations, and enhancing overall grid efficiency through structured loss reporting.
