The Nigerian Independent System Operator (NISO) is currently losing between N5bn and N8bn monthly due to inefficiencies in the nation's power grid. Abdu Bello, the Managing Director/Chief Executive Officer of NISO, stated that targeted interventions by the operator have begun to reduce these losses and improve grid stability.
Bello made these remarks during NISO's first-anniversary celebration in Abuja, where he presented a scorecard of the organization's reforms and operational milestones since its inception. NISO was officially created on April 30, 2024, by the Nigerian Electricity Regulatory Commission after the unbundling of the Transmission Company of Nigeria under the Electricity Act, 2023.
At its inception, NISO inherited a high transmission loss factor, which was close to 10 percent and incurred substantial financial implications for the power sector. Bello noted that deliberate operational measures have started yielding positive results, with the transmission loss factor currently reduced to 7.05 percent. NISO aims to further decrease this to five or six percent to meet regulatory targets.
The past year has been characterized by institution-building, system stabilization, and market reforms aimed at repositioning Nigeria’s electricity sector. Bello emphasized that NISO's mandate includes ensuring a stable and credible grid and market, with coordinated planning to support economic growth.
A key initiative by NISO is the digitization of grid operations through advanced monitoring systems. The operator is accelerating the deployment of Supervisory Control and Data Acquisition/Energy Management Systems (SCADA EMS) to enable real-time grid visibility. This project is being implemented in close collaboration with the Nigerian Electricity Regulatory Commission.
Furthermore, NISO is deploying telemetry systems and Internet-of-Things (IoT)-based metering infrastructure across generation units, transmission lines, and substations. The completion of these projects is expected to provide end-to-end visibility of the system, from generation through transmission and distribution, enhancing effective grid management and enabling hourly or real-time market settlements.
To tackle grid instability and system collapses, NISO is implementing technical reforms and stricter compliance enforcement. Distribution companies have been directed by the Nigerian Electricity Regulatory Commission to install IoT meters on their 33 kV and 11 kV feeders. NISO is also working with generation companies to implement the free-governor mode of operation for generating units to improve frequency response, which has already shown improvements in grid frequency stability.
NISO is also developing a grid 'islanding' strategy, which segments the national grid to prevent widespread outages. This approach aims to enhance resilience by ensuring that disturbances in one segment do not cascade across the entire grid, thereby significantly reducing the risk of total system collapse.
In terms of market operations, NISO has enhanced monitoring and enforced compliance with the grid code, market rules, and metering standards. The organization is also upgrading market systems for real-time operations and improved analytics. NISO is playing a central role in coordinating emerging state electricity markets with the national wholesale market following recent sector reforms.
Bello also highlighted that recent fluctuations in power generation are linked to gas supply challenges, underscoring the need for stronger coordination between the power and gas sectors.
