Nigeria’s power sector regulator, Nigerian Electricity Regulatory Commission (NERC), has introduced a new performance benchmark aimed at tightening operational efficiency across the national grid, directing the Transmission Company of Nigeria (TCN) to reduce system losses to 6.5 percent within the next two years.
The directive forms part of a broader effort to strengthen grid reliability and improve electricity delivery amid persistent challenges in the country’s power value chain.
Transmission losses, which occur during the movement of electricity from generation plants to distribution networks, have long undermined overall system efficiency and contributed to supply constraints.
Under the new framework, the regulator is pushing for measurable improvements in transmission performance, with a clear timeline that aligns with ongoing sector reforms.
The move signals a shift toward stricter oversight and performance-based regulation as authorities seek to close operational gaps that have historically limited the effectiveness of the grid.
Industry analysts view the 6.5 percent loss threshold as an ambitious but necessary target, given the current state of infrastructure and the growing demand for stable electricity supply across households and industries.
Achieving this level of efficiency will require upgrades to transmission infrastructure, improved maintenance practices, and the deployment of modern monitoring systems.
The Transmission Company of Nigeria, which is responsible for managing the country’s high-voltage transmission network, has been under increasing pressure to enhance capacity and reduce bottlenecks.
In recent years, the company has embarked on several expansion and rehabilitation projects aimed at increasing wheeling capacity and stabilising the grid. However, system losses and occasional grid disturbances continue to pose risks to consistent power delivery.
The regulator’s directive is expected to drive accountability across the transmission segment while complementing parallel reforms in generation and distribution.
By setting a defined loss threshold, authorities are creating a benchmark against which operational performance can be measured and enforced.
For investors and stakeholders, the policy underscores the government’s renewed focus on improving power sector fundamentals, particularly in areas that directly impact efficiency and cost.
Lower transmission losses could translate into better revenue recovery across the value chain, improved investor confidence, and enhanced capacity to meet rising electricity demand.
As Nigeria continues to pursue energy sector reforms, the success of this directive will depend on execution, funding, and sustained regulatory enforcement.
The coming months will be critical in determining whether the transmission segment can deliver on the new target and support broader economic growth through a more reliable power supply.
