NISO Flags Billions Lost to Grid Inefficiency

  • NISO reduces transmission losses in Nigeria’s power sector, cutting inefficiencies from about 10% to 7.05%.
  • The operator advances major reforms in grid monitoring and regional integration, deploying digital systems and enforcing compliance.

Nigerian Independent System Operator (NISO) has revealed that Nigeria’s power sector was losing between ₦5bn and ₦8bn monthly due to transmission inefficiencies. The Managing Director and Chief Executive Officer, Abdu Bello, disclosed this during the organisation’s first anniversary event in Abuja.

He explained that the sector initially recorded a transmission loss factor of about 10%, which created significant financial losses. However, he said NISO has reduced the figure to about 7.05% through targeted operational reforms. The operator aims to bring it down further to 5-6% to meet regulatory targets.

Bello said NISO focuses on institution-building, system stabilisation, and market reforms to reposition the electricity sector. He added that the organisation now manages system operations, market administration, planning, and enforcement of grid codes to support economic growth.

The operator has also accelerated the deployment of digital systems to improve grid visibility. It is implementing Supervisory Control and Data Acquisition/Energy Management Systems (SCADA/EMS) to monitor the grid in real time. In addition, it is rolling out telemetry and Internet-of-Things-based metering across generation plants, transmission lines, and substations.

Once completed, these systems will give operators full visibility from generation to distribution. Bello said this will enable faster market settlements and could eventually support real-time electricity trading instead of manual processes.

NISO is also tightening compliance to improve grid stability. It is enforcing the free-governor control mode for generation units to strengthen frequency response. As a result, system frequency stability has improved, although enforcement actions continue against non-compliant operators.

In addition, the operator is developing a grid “islanding” system to prevent nationwide blackouts. This approach will isolate faults so that disturbances in one part of the grid do not collapse the entire system.

Bello also said NISO now coordinates Nigeria’s emerging state electricity markets following recent reforms. This role ensures proper integration between state grids and the national wholesale market.

He linked recent drops in power generation to gas supply constraints and stressed the need for stronger coordination between the electricity and gas sectors.

In a major milestone, NISO achieved trial synchronisation of Nigeria’s grid with the West African Power Pool (WAPP) on November 8, 2025. This integration allows Nigeria to trade electricity regionally, either exporting surplus power to earn foreign exchange or importing power during shortages.

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