General News
NISO Chief Warns Against Fragmented Electricity Infrastructure Amid State Market Reforms
The Managing Director and Chief Executive Officer of the Nigerian Independent System Operator (NISO), Engr. Abdu Bello Mohammed, has urged stakeholders in the electricity sector to strengthen coordination as states establish independent electricity markets, warning that decentralisation must drive investment rather than fragment the industry.
Mohammed gave the warning at the Africa Energy Leadership Summit 2026, which is holding at the Landmark Centre in Lagos from October 27 to 29.
He said the implementation of the Electricity Act 2023 had created new opportunities for states to develop their electricity markets and establish regulatory institutions, but stressed the need for integrated planning to prevent infrastructure gaps and operational inefficiencies.
According to him, the growing number of state electricity markets, independent transmission infrastructure providers, decentralised generation projects and distribution networks requires stronger collaboration among industry stakeholders.
Mohammed explained that NISO was broadening its responsibilities beyond conventional grid operations to serve as a neutral technical integrator, system coordinator and market facilitator.
He said the organisation was working to provide the planning and operational frameworks necessary to ensure that the different electricity markets and infrastructure operators function effectively within Nigeria’s broader power system.
The NISO chief clarified, however, that the organisation’s expanding role did not make it a regulator of state electricity markets or undermine the statutory responsibilities of the Nigerian Electricity Regulatory Commission (NERC) and state electricity regulatory authorities.
He noted that coordination was particularly important where state electricity networks connect to the national transmission grid, exchange power across state boundaries or rely on shared transmission infrastructure.
Without proper coordination, he warned, investments could become incompatible, undermine system efficiency and limit the benefits of decentralisation.
To minimise these risks, Mohammed said NISO was promoting Integrated Resource Planning to align investments in electricity generation, transmission and distribution.
He explained that the approach would help ensure that infrastructure projects were technically compatible, economically viable and consistent with the long-term development needs of the electricity industry.
He also identified digitalisation and access to reliable industry data as essential to improving transparency, coordination and investor confidence.
Mohammed disclosed that NISO was pursuing the development of a centralised data infrastructure for the Nigerian Electricity Supply Industry (NESI) to consolidate, validate, manage and share critical information across the sector.
“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,” he said.
He called on state governments, regulators, investors, development partners and technology providers to work with NISO to ensure that the opportunities created by the Electricity Act 2023 translate into improved electricity access, greater reliability, affordability and economic growth.
Mohammed emphasised that cooperation among stakeholders would be crucial to building an electricity market capable of attracting sustainable private investment while meeting the country’s growing energy needs.
