The Nigerian Electricity Regulatory Commission (NERC) has unveiled new measures aimed at reducing electricity transmission losses while strengthening the regulatory framework for mini-grid operators across the country.
The commission announced updated guidelines designed to improve efficiency in Nigeria’s power sector, with a focus on enhancing transparency, accountability, and service delivery within the electricity value chain.
As part of the reforms, NERC introduced new directives on Transmission Loss Factor (TLF) reporting. The move is intended to ensure more accurate tracking of energy losses across the national grid and promote operational efficiency among transmission and distribution operators.
Transmission losses energy lost during the movement of electricity from generation to end users remain a major challenge in Nigeria’s power sector. By enforcing stricter reporting standards, the regulator aims to reduce inefficiencies and improve overall grid performance.
New Framework to Strengthen Mini-Grid Operations
In addition to addressing transmission losses, NERC also rolled out updated guidelines for mini-grid operators, particularly those connected to distribution networks.
The new framework builds on existing regulations to clarify commercial arrangements between distribution companies (DisCos) and mini-grid developers. It introduces structured payment systems and operational rules designed to minimise disputes and encourage investment in decentralised power solutions.
Under the guidelines, mini-grid operators are required to adhere to defined tariff structures and settlement mechanisms, including fixed and variable cost components. This is expected to create a more predictable business environment and attract private sector participation.
The reforms are also aligned with the Electricity Act 2023, which empowers NERC to promote renewable energy and expand electricity access, particularly in underserved and off-grid communities.
Boosting Electricity Access and Reliability
Experts say the new measures could accelerate the deployment of mini-grids, which are increasingly seen as a viable solution to Nigeria’s electricity access gap.
Mini-grids small-scale, localised power systems play a critical role in delivering electricity to rural and underserved areas where the national grid remains unreliable or absent.
By improving regulatory clarity and reducing technical inefficiencies, NERC aims to enhance power supply reliability while supporting the transition to cleaner and decentralised energy sources.
The commission maintains that the combined approach cutting transmission losses and strengthening mini-grid governance will contribute to a more resilient and efficient electricity sector in Nigeria.
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