NISO MD Warns Against Power Sector Fragmentation, Seeks Investment Boost
Adaora Ezenwaka
As more Nigerian states take charge of their electricity markets, the Managing Director of the Nigerian Independent System Operator (NISO), Engr. Abdu Bello Mohammed, has warned that poor coordination could undermine efforts to improve power supply and attract investment.
Mohammed said decentralisation should open up new opportunities for electricity development rather than create fragmented infrastructure and competing systems.
He spoke at the Africa Energy Leadership Summit 2026, holding at the Landmark Centre, Lagos, from October 27 to 29.
With states establishing electricity markets and regulatory institutions under the Electricity Act 2023, he said, stronger collaboration was needed to ensure that investments in generation, transmission and distribution worked together.
He explained that the emergence of state electricity markets, independent transmission infrastructure providers and new distribution networks was changing the demands on Nigeria’s electricity system.
Mohammed said NISO was strengthening its role as a neutral technical coordinator and market facilitator to improve planning, system operations and cooperation among industry stakeholders.
He stressed, however, that the 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.
According to him, effective coordination is essential as state electricity networks connect to the national grid, exchange power across state boundaries or rely on shared transmission infrastructure.
To prevent wasteful investments and incompatible systems, Mohammed said NISO was promoting Integrated Resource Planning to ensure that projects across the electricity value chain were technically compatible, economically viable and aligned with the sector’s long-term needs.
He also disclosed that NISO was pursuing a centralised Nigerian Electricity Supply Industry (NESI) data infrastructure to improve access to reliable industry information, strengthen transparency and boost investor confidence.
“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.
Mohammed urged state governments, regulators, investors, development partners and technology providers to work with NISO to translate the opportunities created by the Electricity Act 2023 into improved electricity access, reliability and affordability.
He said coordinated development would be critical to ensuring that electricity market reforms deliver tangible benefits for businesses, households and the wider economy.
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