I have been reading the recent book The Evolution of Principia Mathematica, by Bernard Linsky.
The quote in the post is in significant ways not quite right. It comes in the Introduction to the 1925 Edition of Principia, first page. Here is what was actually written, in full.
"The most definite improvement resulting from work in mathematical logic is the substitution, in Part I, Section A, of the one indefinable "$p$ and $q$ are incompatible" (or, alternatively, "$p$ and $q$ are both false") for the two indefinables "not-$p$" and "$p$ or $q$." This is due to Dr. H.M. Sheffer. consequently, M. Jean Nicod showed that one primitive proposition could replace the five primitive propositions $\ast$126.96.36.199.5."
So Russell is saying that the greatest improvement in the second edition of Principia that is due to recent advances in mathematical logic, presumably by others, came from using the Sheffer stroke and an axiomatization based on the work of Nicod. There are also significant changes in the description of type theory, but presumably that is not mentioned here because it is based on ideas of Russell. (By this time, Whitehead had bailed.)
Russell is not saying that Sheffer's work is the most important development in mathematical logic of the previous fourteen years.