Transmission Losses Cost Power Sector N2.6 Billion in First Quarter

Nigeria’s power sector incurred an estimated N2.61 billion in losses during the first quarter of 2026, as the Transmission Company of Nigeria failed to meet efficiency targets set by the industry regulator.

According to a report by the Nigerian Electricity Regulatory Commission, the Transmission Loss Factor (TLF) which measures the energy generated that never reaches distribution companies or other off-takers exceeded the regulatory benchmark. The TLF for the quarter reached 7.96%, surpassing the target of 7.00%. This means for every 100 megawatt-hours of energy injected into the grid, nearly 8 megawatt-hours were lost or consumed within the transmission network.

The total financial impact of N2.61 billion includes costs associated with the excess loss factor and penalties payable to power generation companies. The commission noted that because these losses exceed the allowable threshold, they cannot be recovered from consumers, placing a direct financial burden on the transmission system.

Beyond the financial losses, the report highlighted a decline in the overall stability of the national grid. The frequency profile fluctuated beyond the prescribed operational limits, dropping as low as 49.11Hz and rising to 50.72Hz. The regulator emphasized that such instability, combined with persistent voltage fluctuations, poses a risk to equipment and compromises the quality of power delivered to industrial consumers.

Voltage levels on the 330kV network were also found to frequently operate outside the standard acceptable range. The regulator warned that these issues, including power spikes and brownouts, could damage sensitive industrial machinery and discourage manufacturers from relying on the national grid, forcing them to seek alternative power sources.