How Nigeria Loses up to N8bn Monthly to Power Transmission Failures — NISO
- Nigeria loses between N5bn and N8bn monthly due to transmission inefficiencies
- NISO says it is deploying advanced monitoring systems to improve grid visibility
- Nigeria has synchronised its grid with the West African Power Pool to boost regional trade
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s electricity sector loses between N5 billion and N8 billion every month due to transmission inefficiencies, according to the Managing Director of the Nigerian Independent System Operator (NISO), Abdu Bello.
Bello disclosed this on Wednesday during NISO’s first anniversary event held in Utako, Abuja, where he outlined key reforms and operational progress recorded since the agency was established.
Source: UGC
As reported by PUNCH, Bello stated that the operator inherited significant transmission losses at inception, with the loss factor nearing 10 per cent, resulting in substantial financial setbacks for the sector.
He noted that targeted interventions have begun to yield results, with losses now reduced to about 7.05 per cent. Bello added that efforts are ongoing to bring the figure down further to between five and six per cent in line with regulatory targets.
One year of system stabilisation
The NISO boss explained that the past year has focused on building institutional capacity, stabilising the grid, and implementing market reforms.
He said the organisation was created by the Nigerian Electricity Regulatory Commission (NERC) on April 30, 2024, following the unbundling of the Transmission Company of Nigeria under the Electricity Act, 2023.
Bello stated that NISO’s mandate includes system operations, market administration, planning, and enforcement of grid and market rules to ensure a stable and efficient electricity system.
Push for digital grid monitoring
A major part of NISO’s reforms involves the deployment of advanced monitoring systems to improve grid visibility and control.
Bello said the agency is accelerating the rollout of Supervisory Control and Data Acquisition/Energy Management Systems (SCADA/EMS), alongside telemetry and Internet-of-Things-based metering infrastructure across power generation, transmission, and distribution networks.
He added that the project, expected to be completed before the end of the year, would enable real-time monitoring of the national grid and improve electricity market operations.
Tackling grid instability
Bello also said NISO is implementing technical measures to reduce grid instability and prevent system collapses.
These include enforcing compliance with operational standards such as free-governor mode for generating units, as well as introducing grid “islanding” to limit the spread of disruptions across the network.
According to him, compliance levels have improved, leading to better frequency stability and overall grid reliability.
Source: Getty Images
Market coordination and regional integration
On market operations, Bello said the operator has strengthened compliance monitoring, improved transparency, and upgraded systems for real-time analytics.
He added that NISO is coordinating emerging state electricity markets to ensure alignment with the national wholesale system.
Bello also linked recent fluctuations in power generation to gas supply constraints, noting that stronger collaboration between the power and gas sectors is required.
In addition, he revealed that Nigeria successfully synchronised its national grid with the West African Power Pool on November 8, 2025, enabling cross-border electricity trade and potential foreign exchange earnings.
8 GenCos sign Tinubu’s N3.3trn settlement deal
Legit.ng earlier reported that eight major electricity generation companies in Nigeria have signed onto President Bola Tinubu’s N3.3 trillion debt settlement programme aimed at addressing liquidity challenges in the power sector.
The agreement, which covers 15 generation plants operated by six private firms and two public entities, is designed to clear longstanding financial obligations that have hindered investment and operational efficiency across the electricity value chain.
Experts say transparency is crucial to ensuring the reform's success and attracting investment.
Source: Legit.ng
