NISO Reduces Grid Losses To 7% in First Year Amid Push for Stability

The Nigeria Independent System Operator (NISO) said it has slashed grid losses to seven per cent within its first year of operations, as part of broader efforts to enhance grid stability and reliability.

This is as NISO’s managing director/chief executive officer, Abdu Mohammed Bello, on Wednesday, identified market liquidity challenges, grid infrastructure limitations, compliance gaps, and constraints related to renewable energy integration as critical issues facing Nigeria’s electricity sector.

Bello spoke in Abuja during NISO’s first anniversary celebration.

Recall that the NISO was officially established on April 30, 2024, by the Nigerian Electricity Regulatory Commission (NERC).

The agency celebrated “measurable impact” in stabilising Nigeria’s fragile power grid, including a sharp reduction in transmission losses from nearly 10 per cent to 7.05 per cent.

The MD underscored NISO’s pivotal role in the country’s electricity reforms, even as persistent challenges like generator non-compliance and monitoring gaps demand urgent action.

Established about one year ago under the Electricity Act 2023 as amended—from the Transmission Company of Nigeria (TCN)—NISO shoulders critical responsibilities: independent system operations, market administration, strategic planning, and enforcement of grid codes, market rules, and regulatory instruments.

“Today, we are not just celebrating one year of existence; we are reflecting on deliberate efforts, institutional progress, and measurable impact.”

Transmission losses stole the spotlight as a key victory. At inception, losses hovered near 10 per cent, draining up to N5 to 8 billion monthly and exacerbating Nigeria’s chronic power shortages. Through targeted interventions—intensified monitoring, operational coordination, and system discipline—NISO has pared this to 7.05 per cent.

“One of the greatest problems we encountered was this high transmission loss factor,” the MD/CEO explained.

“We are working earnestly and have reduced it… we are working to reduce it further to five or six per cent to meet targets.”

Grid stability efforts form the backbone of these gains. NISO is enforcing free-governor mode operations on generating units to bolster frequency response, with substantial compliance from most but “some generators having failed to abide.”

Complementary projects include grid protection coordination to fix uncoordinated relay settings, expected to wrap in three to six months, and “grid islanding”

This would segment the grid into isolatable “islands,” containing disturbances to prevent nationwide collapses—a frequent scourge in Nigeria’s power sector.

Real-time visibility remains a workhorse priority. Accelerating the SCADA/EMS project with the Nigerian Electricity Regulatory Commission (NERC), advanced telemetry at trading points, and widespread IoT metering on generation units, transmission lines, substations, and soon distribution feeders (per NERC orders) promise “end-to-end visibility” by year-end. “By the time we finish, we shall have visibility of the national grid from generation through transmission, distribution, and eligible customers,” the MD/CEO stated, enabling hourly settlements and ditching manual processes.

Market reforms are gaining traction too. NISO has enhanced compliance monitoring, upgraded systems for real-time trading and analytics, and fostered coordination among generators, transmitters, distributors, and traders. It now interfaces emerging state electricity markets—enabled by recent reforms allowing states to regulate their own—with national standards, ensuring seamless planning and operations.

On the planning front, NISO supported the Integrated Resource Plan (IRP), submitted a revised transmission expansion plan to curb ad-hoc infrastructure growth, and advanced studies on renewable energy integration and battery storage systems. A super grid initiative review prioritizes high-impact investments, aligning with energy transition goals and regional integration.

Institutionally, NISO has built robust governance, staff onboarding, technical training, and welfare programs to cultivate “a performance-driven culture anchored on teamwork and professionalism.” A new office and centralized data center are in the works, with the CEO noting, “Our greatest asset is our staff.”

As Nigeria grapples with economic pressures and power deficits hindering growth, NISO’s first year signals a shift toward a “credible, data-driven” NESI.

The system, however, continues to experience ongoing blackouts and delays as evidence that full transformation requires faster execution and stakeholder buy-in.

The MD/CEO remained optimistic: “These efforts are laying the foundation for a stable grid, transparent market, and coordinated planning to support sustainable national development.”