The Managing Director and Chief Executive Officer of the Nigerian Independent System Operator, Abdu Bello, has disclosed that Nigeria’s power sector had been losing between N5bn and N8bn monthly due to transmission inefficiencies, but said recent interventions are beginning to reduce the losses and improve grid stability.
Bello made this known during the organisation’s first anniversary celebration held at its headquarters in Utako, Abuja, where he presented an overview of reforms and operational milestones recorded since the agency was established.
He explained that one of the biggest challenges inherited at the beginning of operations was a very high transmission loss factor, which at one point was close to 10 per cent and carried serious financial implications for the power sector.
According to him, targeted operational efforts have helped reduce the figure to about 7.05 per cent, with plans underway to lower it further to between five and six per cent in line with regulatory expectations.
Bello said the organisation’s first year has focused heavily on institution-building, system stabilisation, and market reforms aimed at repositioning Nigeria’s electricity sector.
He noted that the agency was created to serve as an independent system operator, with responsibilities covering system operations, market administration, planning, and the enforcement of grid codes and market rules.
According to him, the mandate is central to ongoing power sector reform and is designed to ensure a more stable grid, a more credible market, and better coordination in planning and operations.
On institutional development, Bello said governance and management structures have been put in place at both the board and executive levels, while coordination has also been strengthened across the electricity value chain, from generation to transmission, distribution, and eligible customers.
A major part of the reforms, he said, has been the push to digitise grid operations through the deployment of modern monitoring and control systems.
He disclosed that the operator is accelerating the implementation of the Supervisory Control and Data Acquisition/Energy Management Systems to improve real-time monitoring and management of the national grid.
He added that the organisation has also reached an advanced stage in the deployment of telemetry systems across electricity trading points and is introducing Internet-of-Things-based metering infrastructure across generation units, transmission lines, and substations.
According to Bello, the goal is to achieve full visibility of the national grid from generation through transmission, substations, and distribution before the end of the year.
He said the move would make it possible to carry out near-real-time electricity market settlements and significantly improve overall operational efficiency.
Currently, he noted, most of the system still operates largely manually, but the introduction of telemetry and advanced metering would help modernise both grid management and market operations.
Bello also said the operator has intensified efforts to address grid instability and recurring system collapses through technical reforms and stronger enforcement of compliance.
He noted that regulators have already directed distribution companies to install IoT meters on their 33kV and 11kV feeders, a step he said would further improve end-to-end visibility across the electricity network.
According to him, once the project is completed, system operators and market operators will be able to monitor activities across the sector on a real-time basis, improving both efficiency and responsiveness.
On grid stability, Bello said the organisation is working closely with generation companies and other stakeholders to implement the free-governor mode of operation for generating units in order to improve frequency response.
He said a number of generating units have already complied with the directive, leading to noticeable improvements in system frequency and overall grid reliability, while enforcement actions are still being pursued against defaulters.
He also disclosed that the organisation is developing grid islanding measures to improve resilience and prevent disturbances in one section of the grid from spreading across the entire national network.
According to him, this would significantly reduce the risk of total system collapse and improve the sector’s ability to contain faults more effectively.
On market operations, Bello said efforts have also been made to improve transparency, strengthen compliance with market rules, and upgrade market systems to support real-time operations, efficient settlement, and better analytics.
He added that the operator is also helping to coordinate the emergence of state electricity markets following recent reforms that now allow states to establish their own electricity systems.
According to him, the interface between these emerging subnational electricity markets and the national wholesale market is now being managed centrally to ensure coordination and system stability.
Bello further linked recent fluctuations in power generation to gas supply constraints, stressing the importance of stronger coordination between the power sector and gas suppliers.
He said the issue remains a major concern but assured that regulators and industry stakeholders are working to address it and prevent future disruptions.
In another major development, he disclosed that Nigeria has achieved trial synchronisation of its national grid with the West African power system, a move expected to open opportunities for cross-border electricity trade.
According to him, the development positions Nigeria to either export excess electricity to neighbouring countries or import when necessary, while also creating a potential source of foreign exchange earnings that could be reinvested into domestic infrastructure.
Looking ahead, Bello said the agency’s focus in its second year would be on deepening grid visibility, strengthening system reliability, improving market transparency, supporting the growth of both national and subnational electricity markets, and advancing renewable energy integration and broader energy transition goals.
He said the ultimate measure of success would be the delivery of a stable grid, a credible electricity market, and stronger investor confidence in Nigeria’s power sector.
Although the sector continues to face structural challenges such as transmission bottlenecks, gas shortages, liquidity problems, and weak infrastructure, Bello said the progress made so far signals a gradual shift toward data-driven grid management, better planning, and a more coordinated electricity market.
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