Nigeria Optimising Electricity Sector For Domestic Use, Export — NISO

Nigeria has begun restructuring its electricity sector to serve both domestic demand and regional markets, the Nigerian Independent System Operator (NISO) said, as the country’s transmission network now has the capacity to wheel about 8,700 megawatts.

The optimisation of installed capacity will take shape as the Nigerian Independent System Operator (NISO) confirmed new operational capabilities that will enhance efficiency and strengthen export competitiveness.

Confirming this shift, the managing director of the NISO, Abdu Mohammed, exclusively told LEADERSHIP that the investment targets electricity export growth with intended economic returns and, on the other hand, effectively addresses rising domestic demand.

He said NISO is improving coordination across generation, transmission and distribution to boost efficiency, attract investment and position Nigeria as a competitive supplier within the West African Power Pool — even as the nation works to close the gap between installed capacity and power delivered to consumers.

His response stems from comments credited to Energy minister and Green Transition of Ghana, John Abdulai Jinapor, expressing his country’s willingness to begin supplying electricity to Nigeria as part of a broader regional ambition.

Ghana already exports power to Togo, Benin, Côte d’Ivoire and Burkina Faso, with Nigeria representing a major new target market.

The government’s energy mix plan combines natural gas, renewables and nuclear power to support Mahama’s 24-Hour Economy initiative.

Ghana is moving to add Nigeria to its growing list of electricity export partners, with Jinapor saying the country aims to become a reliable power supplier for the wider West African sub-region.

Jinapor highlights a diverse energy mix to support the 24-Hour Economy initiative, according to a report published August 21, 2026, by gen.com.gh.

But, Mohammed, told our correspondent that such a conversation has not happened and that Nigeria has a huge installed capacity that could serve the West African market.

He said, “I want to assure you that we are rejigging the energy market and we have the capacity to deliver value to regional economies, so we are both the capacity and the potential to provide commercial energy support to our neighbours”, he said.

The NISO is also working with industry operators to improve coordination in the generation, transmission, and distribution of electricity, ensuring compliance with regulations and benefiting Nigerian consumers.

Also, speaking to LEADERSHIP on the issue, Sadiq Wanka, Special Adviser to the President on Power Infrastructure, said, “But, in general, Nigeria and Ghana are both members of the West African Power Pool (WAPP), which provides the framework for cross-border electricity trading between member countries.

“In addition to our vast generation potential (because we have gas, hydro and solar potential), Nigeria already has an installed generation capacity that outstrips grid consumption today.”

Continuing, Wanka said, “So, in the near term or over the medium to long term, I would expect Nigeria to maintain the potential to be a net exporter of electricity within the region, rather than an importer. Ghana selling electricity to Nigeria is not inconsistent with that outlook. There could be periods or circumstances where Ghana has surplus power that is commercially attractive for Nigerian off-takers to import, even while Nigeria remains a net exporter over time and in aggregate.”

Mohammed also assured that the Independent System Operator will create a transparent, disciplined, and orderly environment for the country’s electricity sector.

The MD explained that the operator will provide the changes the system has been yearning for, which will guarantee availability, reliability, and a high-quality power supply to the citizenry.

Our correspondent reports that experts have said that Nigeria must increase annual electricity investment from about $1 billion to roughly ten times that level if it wants universal access and sufficient power for industry.

The Electricity Act 2023 has widened state participation and opened additional space for private investment across the value chain.

Subnational regulators are emerging, states are announcing partnerships, and private players can now operate transmission infrastructure rather than only finance assets controlled by the national transmission company.

Meanwhile, the Transmission Company of Nigeria (TCN) has said the country’s transmission infrastructure can wheel more electricity than is currently generated, putting its installed wheeling capacity at 8,700 megawatts (MW).

The Managing Director/Chief Executive Officer of TCN, Sule Ahmed Abdulaziz, recently said the national grid had consistently demonstrated the ability to evacuate all available generation, stressing that transmission was not currently the binding constraint in the electricity value chain.

According to data cited by TCN from the Nigerian Electricity Regulatory Commission (NERC) February 2026 Operational Factsheet, the country’s installed generation capacity stands at 13,625MW. However, the highest power ever generated and delivered to the national grid remains 5,801.84MW, as recorded on March 4, 2025.

On the same date, TCN said it achieved a record daily energy delivery of 128,370.75 megawatt-hours (MWh). The company said its transmission wheeling capacity has now grown from about 7,000MW to 8,700MW following the expansion projects carried out in recent years.

Abdulaziz said the expansion was supported through strategic investments from the federal government and development partners. He further disclosed that between January 2024 and November 2025, TCN commissioned 82 power transformers nationwide, adding about 8,500MVA of transformation capacity to the grid.

He added that the company has also mobilised over $1.4 billion in development financing from multilateral partners, including the World Bank, the African Development Bank (AfDB), the Japan International Cooperation Agency (JICA), and the Agence Française de Développement (AFD), to support transmission expansion and modernisation.