Nigeria’s electricity transmission inefficiencies cost the power sector an estimated N2.61 billion in the first quarter of 2026 after the Transmission Company of Nigeria (TCN) failed to meet the transmission loss target set by the Nigerian Electricity Regulatory Commission (NERC).
According to NERC’s first-quarter 2026 report, the Transmission Loss Factor (TLF) exceeded the regulatory benchmark during the period, indicating that a portion of electricity generated by power plants failed to reach distribution companies and other off-takers.
The TLF measures the share of electricity generated that is either lost during transmission or consumed at transmission substations before it reaches Distribution Companies (DisCos) or export customers.
NERC explained that the lower the Transmission Loss Factor, the more efficient the transmission system becomes, as fewer units of electricity are lost between generation and final delivery.
The commission disclosed that the estimated N2.61 billion financial impact comprised N257.91 million arising directly from transmission losses
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