The Managing Director and Chief Executive Officer of the Nigerian Independent System Operator, Abdu Bello, has disclosed that Nigeria’s power sector has been losing between N5bn and N8bn monthly due to transmission inefficiencies, even as ongoing reforms begin to improve grid performance.
Bello made the revelation on Wednesday during the organisation’s first anniversary celebration at its headquarters in Utako, Abuja, where he presented a scorecard of achievements since NISO’s establishment.
The operator was created on April 30, 2024, by the Nigerian Electricity Regulatory Commission following the unbundling of the Transmission Company of Nigeria under the Electricity Act, 2023, as part of broader reforms to strengthen the country’s electricity market.
Highlighting early challenges, Bello said the organisation inherited a transmission loss factor of nearly 10 per cent, with significant financial implications. He, however, noted that targeted interventions have reduced losses to about 7.05 per cent, with efforts underway to bring it down further to between five and six per cent in line with regulatory targets.
Reflecting on the past year, Bello said NISO’s operations have focused on institutional development, system stabilisation, and market reforms aimed at repositioning the power sector. He explained that the agency’s core mandate includes system operations, market administration, planning, and enforcement of grid codes and market rules to ensure stability and efficiency.
A key highlight of the reforms is the push toward digitising grid operations through the deployment of Supervisory Control and Data Acquisition/Energy Management Systems (SCADA/EMS), which will enhance real-time monitoring and control of the national grid. According to Bello, the project is progressing steadily in collaboration with regulators and will significantly improve operational visibility.
He added that telemetry systems and Internet-of-Things-based metering infrastructure are also being deployed across generation plants, transmission networks, and substations. The initiative is expected to enable near real-time electricity market settlements and improve overall efficiency, replacing largely manual processes currently in use.
On grid stability, Bello said NISO has intensified enforcement of technical standards, including compliance with the free-governor mode of operation for generating units, which has already led to improvements in frequency control and overall reliability. He also revealed plans to introduce grid “islanding” to prevent disturbances in one part of the network from triggering widespread outages.
The NISO boss further noted that the organisation is strengthening market transparency and compliance while coordinating emerging state electricity markets in line with recent sector reforms. He stressed that NISO plays a critical role in managing the interface between state-level systems and the national wholesale electricity market.
Addressing recent fluctuations in power generation, Bello attributed the decline to gas supply constraints, underscoring the need for stronger coordination between the power and gas sectors. He assured that stakeholders are working to resolve the issue and prevent future disruptions.
In a major regional milestone, Bello disclosed that Nigeria successfully synchronised its national grid with the West African Power Pool on November 8, 2025. He said the development positions the country for cross-border electricity trade, enabling both export and import of power while creating opportunities to earn foreign exchange and strengthen domestic capacity.
He maintained that ongoing reforms are laying the foundation for a more resilient, transparent, and data-driven electricity market capable of supporting Nigeria’s economic growth.