The unbundling of Transmission Company of Nigeria (TCN) by the Nigerian Electricity Regulatory Commission in 2024 gave rise to the creation of two different entities: the Nigerian Independent System Operator Nigeria Limited (NISO) and the Transmission Service Provider (TSP) in accordance with the provision of the Electricity Act (2023).
The TCN is however retaining its transmission service provider (TSP) license and is responsible for transmission assets and liabilities and perform such functions as are re-evant to the development and maintenance of the power transmission infrastructure.
While on the other hand, the Nigerian Electricity Regulatory Commission (NERC) officially established NISO on April 30, 2024, with the Bureau of Public Enterprises (BPE) and the Ministry of Finance Incorporated (MOFI) as its subscribers, each holding equal equity shares.
With this move, the NISO is expected to manage assets and liabilities related to the electricity market and system operations on behalf of designated stakeholders as may be specified by the NERC.
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It is also expected to execute all market and system operation-related contractual rights and obligations transferred from the TCN, negotiate and enter into procurement contracts for ancillary services with relevant entities, including independent power producers and successor generation licensees.
Also expected of the NISO is the administration of the wholesale electricity market, including the administration of settlement payments, in accordance with the market rules.
Abdul Mohammed Bello, Managing Director of NISO, speaking on the activities of the organization, said that it will focus on delivering improved grid reliability as well as quality power supply across the country.
According to Bello, the major role of the organisation is to drive the needed changes in the nation’s power sector that will enhance availability, reliability, and quality supply of electricity to Nigerians.
“In addition to that, we are supposed to create an atmosphere, an environment of transparency, discipline, and orderliness in electricity business in Nigeria, meaning that participants in generation, transmission, distribution, and eligible customers behave in a passionate manner in line with the provisions of the market rules and the grid code.
Read also: NISO targets grid reliability, improve power supply across Nigeria
He explained that the coming on board of the NISO Board of Management will usher these qualities that are required to make the power sector , just like other power sectors in bigger jurisdictions. ‘’Now it’s a journey. It’s not a one-off business. The beginning of the journey starts today,” he said.
He disclosed the plans to visit the National Control Center, to make sure that operators are aligned with the vision, mission, objectives, and goals as enshrined in the Electricity Act 2023.
For Bello there is need for strategic interfaces with generation companies, Transmission Service Provider, distribution companies, and eligible customers, to ensure electricity is generated, transmitted, distributed and utilized in accordance to the set rules.
To kick start and back up the operation of NISO, President Bola Ahmed Tinubu in March 2025, appointed executive and non-executive board members of the organisation, led by Adesegun Akin-Olugbade is the board chairman.
The President also appointed four Executive Directors: Nafisatu Asabe Ali for Systems Operation, Shehu Abba-Aliyu for Systems Planning, Edmund Eje for Market Operations, and Babajide Ibironke for Finance and Corporate Services.
The Non-Executive Directors include Lamu Audu, representing Generation; Folake Soetan for Distribution; Tajudeen Giwa-Osagie as Market Expert; Sule Ahmed Abdulaziz for Transmission, and Mahmuda Mamman, Permanent Secretary at the Federal Ministry of Power.
