Nigeria’s electricity sector continues to grapple with significant financial losses caused by transmission inefficiencies, but recent reforms are beginning to show measurable progress. The Managing Director and Chief Executive Officer of the Nigerian Independent System Operator (NISO), Abdu Bello, disclosed that the country has been losing between ₦5 billion and ₦8 billion monthly due to transmission losses. He made this revelation during NISO’s first anniversary celebration at its headquarters in Utako, Abuja, where he presented a detailed scorecard of achievements since the organisation’s establishment.
NISO was officially created on April 30, 2024, by the Nigerian Electricity Regulatory Commission (NERC) following the unbundling of the Transmission Company of Nigeria under the Electricity Act, 2023. At inception, Bello explained, the transmission loss factor was alarmingly high, reaching close to 10 percent. This translated into billions of naira in monthly losses for the sector.
“One of the greatest problems we encountered at the inception of NISO is that we recorded a very high transmission loss factor. At some point, it was close to 10 per cent, costing about ₦5bn to ₦8bn monthly,” Bello said. He added that targeted interventions have reduced losses to about 7.05 percent, with ongoing efforts aimed at lowering them further to between five and six percent, in line with regulatory targets.
Building Institutions and Stabilising the Grid
Bello described NISO’s first year as one of institution-building, system stabilisation, and market reform. He emphasised that the organisation was established to function as an independent system operator responsible for system operations, market administration, planning, and enforcement of grid codes and market rules.
“This mandate is central to Nigeria’s power sector reform. It is about ensuring that our grid is stable, our market is credible, and our planning is coordinated so that electricity can effectively support economic growth,” he stated.
NISO has prioritised governance and coordination across the electricity value chain, establishing management structures at both board and executive levels. Coordination has been strengthened from generation through transmission to distribution and eligible customers.
Digitising Grid Operations
A major highlight of Bello’s address was NISO’s push to digitise grid operations. He revealed that the operator is accelerating the deployment of Supervisory Control and Data Acquisition/Energy Management Systems (SCADA EMS) to enable real-time grid visibility.
“On grid visibility, monitoring, and control, a key priority has been improving our ability to see, understand, and manage the national grid in real time. In this regard, we have accelerated the implementation of the SCADA EMS project, working very closely with NERC to ensure that the grid monitoring infrastructure is completed and operational,” Bello said.
He added that telemetry systems and Internet-of-Things-based metering infrastructure are being deployed across generation units, transmission lines, and substations. Once completed, the project will provide full visibility of the national grid from generation through transmission and distribution. This will enable near-real-time electricity market settlements and significantly improve operational efficiency.
Tackling Grid Instability
Bello noted that NISO has intensified efforts to address grid instability and recurring system collapses. Regulators have ordered distribution companies to install IoT meters on their 33 kV and 11 kV feeders, a project that is ongoing. Once completed, operators will have end-to-end visibility of the system, enhancing effective management of the grid.
He also highlighted the enforcement of the free-governor mode of operation for generating units, which has improved frequency response and grid reliability. Several generating units have complied, and enforcement actions are being taken against defaulters.
Additionally, NISO is developing grid “islanding,” a strategy that segments the national grid to prevent widespread outages. “Disturbances in one segment will not cascade across the entire grid. This will significantly reduce the risk of total system collapse,” Bello explained.
Market Operations and Transparency
On market operations, Bello said NISO has taken steps to improve transparency, enforce compliance with market rules, and strengthen coordination among industry players. Monitoring has been enhanced, compliance with grid codes and metering standards enforced, and market systems upgraded to enable real-time operations and improved analytics.
He added that NISO is playing a central role in coordinating emerging state electricity markets following recent sector reforms. “With states now able to establish their own electricity markets, there must be coordination between state systems and the national wholesale market. That interface is being managed by NISO,” he said.
Gas Supply Challenges and Regional Integration
Bello linked recent fluctuations in power generation to gas supply constraints, stressing the need for stronger coordination between the power and gas sectors. “You will have noticed a slight drop in generation capability recently due to gas supply constraints. This coordination between the power sector and gas suppliers is very critical,” he said.
In a significant development, Bello disclosed that Nigeria has achieved trial synchronisation of its national grid with the West African power system. On November 8, 2025, the Nigerian grid was successfully synchronised with the West African Power Pool, opening new opportunities for cross-border electricity trade.
“This gives us a bidirectional opportunity to either supply power to the region or import when necessary. It also creates the potential to earn hard currency, which can be reinvested to improve domestic capacity,” Bello explained.
Looking Ahead
The first year of NISO has been marked by reforms aimed at stabilising Nigeria’s electricity grid, reducing losses, and improving transparency in market operations. While challenges remain, particularly in gas supply and financial sustainability, the progress made in digitisation, compliance enforcement, and regional integration signals a new phase for Nigeria’s power sector.
Bello concluded by reaffirming NISO’s commitment to building a stable, resilient, and transparent electricity system. “Today, we are not just celebrating one year of existence; we are reflecting on one year of deliberate effort, institutional progress, and measurable impact,” he said.
As Nigeria continues to confront the realities of transmission inefficiencies and financial losses, NISO’s reforms represent a crucial step toward a more reliable and sustainable power sector.
