Nigeria’s power sector is losing between N5bn and N8bn every month due to transmission inefficiencies.
The Managing Director of NISO, Abdu Bello, disclosed this in Abuja during the agency’s first anniversary, where he outlined key reforms and operational progress since its establishment in April 2024 following the unbundling of the Transmission Company of Nigeria under the Electricity Act, 2023.
At inception, transmission losses were close to 10 per cent, significantly impacting sector revenues. However, targeted operational measures have reduced losses to about 7.05 per cent, with plans underway to bring the figure down further to between five and six per cent in line with regulatory targets.
Over the past year, NISO has focused on strengthening institutional structures, improving coordination across the electricity value chain, and implementing reforms aimed at stabilising the grid and enhancing market operations. The agency was set up to oversee system operations, market administration, and enforcement of grid and market rules to support a more reliable electricity supply.
A major priority has been the digitisation of grid operations. The operator is accelerating the deployment of Supervisory Control and Data Acquisition and Energy Management Systems to enable real-time monitoring of the national grid. Progress has also been recorded in the rollout of telemetry systems across key electricity trading points.
The ongoing deployment of Internet-of-Things-based metering infrastructure across generation, transmission, and distribution segments is expected to deliver full visibility of the grid before the end of the year. This upgrade will allow near real-time electricity market settlements, replacing the largely manual processes currently in use.
NISO has also intensified efforts to address grid instability and reduce the frequency of system collapses through stricter enforcement of technical standards. Compliance with operational directives for generating units has improved grid frequency stability, while enforcement actions continue against non-compliant operators.
Plans are also underway to introduce grid “islanding,” a system that segments the national grid to prevent disruptions in one area from triggering widespread outages nationwide.
On the market side, the operator has enhanced monitoring systems, enforced compliance with market rules, and upgraded platforms to support real-time operations and data-driven decision-making. It is also coordinating emerging state electricity markets to ensure alignment with the national grid.
Bello noted that recent fluctuations in power generation were linked to gas supply constraints, highlighting the need for stronger collaboration between the power and gas sectors to ensure stable electricity output.
In addition, Nigeria has achieved trial synchronisation with the West African Power Pool, a development that positions the country for cross-border electricity trade. This integration creates opportunities to export surplus power, import when necessary, and generate foreign exchange to support domestic capacity improvements.
