Nigeria’s electricity transmission losses cost the power sector an estimated N2.61bn in the first quarter of 2026 as the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.
The latest first-quarter report released by the commission showed that the Transmission Loss Factor rose above the regulatory benchmark, meaning a share of electricity generated never reached electricity distribution companies and other off-takers.
The Transmission Loss Factor refers to the proportion of the total energy generated by power plants that was either lost during transmission or utilised at transmission stations, meaning it was neither delivered to DisCos nor exported to international customers.
NERC said there is an inverse relationship between the TLF and the efficiency of the transmission system, noting that a decline in the TLF indicates an improvement in transmission efficiency over a given period.
The report showed that the N2.61bn cost comprised N257.91m attributable to transmission loss factor losses and N2.35bn in penalties payable to power generation companies.
