MON APRIL 13 2026-theGBJournal| The Nigerian Electricity Regulatory Commission (NERC) has introduced Order No. NERC/2026/026, a new directive aimed at strengthening transparency and operational efficiency across Nigeria’s power grid through improved reporting of Regional Transmission Loss Factors (TLF).
The move is part of a broader reform push to enhance accountability within the electricity market, provide clearer data for market participants, and support more accurate pricing and system planning.
Alongside this, the Commission has rolled out the Mini-Grid Regulations 2026 (NERC-R-001-2026), a comprehensive framework designed to accelerate electricity access in unserved and underserved communities.
The regulations set out guidelines for the development, operation, and oversight of mini-grids, with a strong focus on safety standards, consumer protection, and investor confidence—positioning decentralized energy solutions as a critical pillar in Nigeria’s power sector expansion strategy.
The Mini-Grid Regulations 2026 regulatory document, numbered NERC-R-001-2026, provides a comprehensive framework for the development, operation, and regulation of mini-grids in Nigeria.
It also aims to expand electricity access, especially in unserved and underserved areas, while ensuring safety, fairness, and investment protection.
The regulatory document, numbered NERC-R-001-2026, aims to expand electricity access, especially in unserved and underserved areas, while ensuring safety, fairness, and investment protection.
The Regulation applies to Isolated mini-grids that operate independently of DisCo networks, up to 5 megawatts (MW); and Interconnected mini-grids which are connected to and coordinated with existing distribution networks, up to 10MW.
It covers developers, operators, distribution companies, and host communities, and aligns with the Electricity Act 2023 and accommodates state-level regulation where applicable.
NERC also is expected to grant Permits through an application process within 30 business day, while operators must submit annual reports for mini-grids below 1MW, and quarterly reports for those above 1MW.
NERC conducts ongoing monitoring and may publish sector data.
Meanwhile, the enhanced reporting of Regional Transmission Loss Factors (TLF) new Order dated 8 April 2026, establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
The Order, according to NERC, is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market. It takes effect from 13 April 2026.
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 is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting.
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