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ELECTRICITY: Decentralisation should create more investment opportunities, not fragmentation – NISO

Date:

By Anthony Isaac

The Nigerian Independent System Operator (NISO) has called for stronger collaboration among stakeholders in the electricity sector to ensure that decentralisation creates more investment opportunities and economic growth rather than fragmented infrastructure and poorly coordinated development.

The Managing Director and Chief Executive Officer of NISO, Engr. Abdu Bello Mohammed, made the call at the ongoing Africa Energy Leadership Summit 2026, in Lagos.

He said Nigeria’s evolving electricity market required a coordinated approach to infrastructure planning, system operations and information management as more states establish their electricity markets and regulatory institutions under the Electricity Act 2023.

Mohammed explained that the emergence of multiple electricity markets, independent transmission infrastructure providers, decentralised generation and new distribution networks was changing the demands on the Nigerian Electricity Supply Industry (NESI).

According to him, NISO is expanding its role beyond conventional grid operations to serve as a neutral technical integrator, system coordinator and market facilitator, providing the necessary planning, operational and market coordination frameworks for efficient interaction among institutions and market participants.

He, however, clarified that the evolving role did not make NISO a regulator of state electricity markets or diminish the statutory responsibilities of the Nigerian Electricity Regulatory Commission (NERC) and State Electricity Regulatory Authorities.

He said effective coordination had become increasingly important as state electricity networks connected to the national transmission grid, exchanged electricity across state boundaries or depended on shared transmission infrastructure.

“Poorly coordinated investments could undermine the benefits of decentralisation,” he warned.

To address the challenges, Mohammed said NISO was advancing the application of Integrated Resource Planning methodologies to ensure that investments in generation, transmission and distribution complemented one another, were technically compatible, economically justified and aligned with the industry’s long-term development needs.

He also identified digitalisation and access to reliable industry data as essential to improving coordination, transparency and investor confidence.

The NISO chief executive disclosed that the operator was pursuing the development of a centralised NESI data infrastructure to consolidate, validate, manage and share critical industry information.

He said the initiative would support better planning, improve transparency and provide investors and other market participants with reliable information for decision-making.

“Our vision is a Nigerian electricity industry that is decentralised in its development opportunities, integrated in its infrastructure planning, coordinated in its operations, transparent in its market administration and attractive to sustainable private investment,” Mohammed said.

He urged state governments, regulators, investors, development partners and technology providers to collaborate with NISO to translate the opportunities created by the Electricity Act 2023 into measurable improvements in electricity access, reliability, affordability and economic development.

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