New Power Rules Aim to Stop Wasted Electricity
A large part of Nigeria’s electricity problem happens before power even reaches homes. Energy is lost along the way, and regulators are now moving to tighten control over it.
The Nigerian Electricity Regulatory Commission has introduced new rules to closely monitor how electricity is lost during transmission across regions. The focus is on tracking, reporting, and reducing these losses with clear data.
Although there has been a small improvement, the numbers remain worrying. Transmission losses dropped to 7.24 per cent in 2025 from 8.71 per cent in 2024. This is still above the allowed 7 per cent limit, showing that too much power is still slipping through the system.
To address this, system operators are now required to install smart meters at key regional points before the end of 2026. These devices will help measure energy flow more accurately and expose where losses are highest.
Operators must also begin proper documentation of electricity passing through transformers and submit reports every quarter. This is expected to improve accountability and reduce guesswork in the sector.
The Transmission Company of Nigeria has also been given a deadline to present a plan on how it will cut down these losses. The target is even stricter now, with losses expected to fall to 6.5 per cent by December 2026.
This move is coming at a time when Nigerians continue to deal with unstable electricity, rising energy costs, and frequent reliance on generators. Every unit of lost power adds to the burden on consumers.
There are also deeper financial issues. Distribution companies are struggling to recover revenue, with a significant portion of electricity either not billed or not paid for. This weakens the entire power system.
The new regulation shifts attention to one key issue: waste. By forcing better tracking and clear reporting, the regulator is pushing for a system where less electricity is lost and more value reaches consumers.
If these measures are followed through, they could help improve efficiency and reduce the silent losses that have long affected Nigeria’s power sector.
