NISO Raises Concern Over Grid, Market Weaknesses
The Managing Director/Chief Executive Officer of the Nigerian Independent System Operator (NISO), Engr. Abdu Mohammed Bello, on Wednesday, identified market liquidity challenges, grid infrastructure limitations, compliance gaps, and constraints related to renewable energy integration as critical issues facing Nigeria’s electricity sector.
Bello spoke in Abuja during NISO’s first anniversary celebration.
THE WHISTLER recalls that the Nigerian Independent System Operator (NISO) was officially established on April 30, 2024, by the Nigerian Electricity Regulatory Commission (NERC).
Its establishment followed the unbundling of the Transmission Company of Nigeria (TCN) under the Electricity Act, 2023.
Speaking at the event, Bello said that while notable progress has been recorded since the organisation’s establishment under the Electricity Act 2023, addressing persistent structural challenges remains a top priority.
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“We are mindful of ongoing challenges market liquidity constraints, grid infrastructure limitations, compliance gaps in critical operational requirements, and renewable energy integration constraints,” he said.
He explained that the issues continue to impact the efficiency and reliability of the Nigerian Electricity Supply Industry (NESI), requiring deliberate and sustained interventions.
According to him, NISO is tackling the challenges through strengthened enforcement of market rules and grid codes, improved system planning, enhanced coordination among stakeholders, and targeted technical solutions.
On market liquidity, he noted that financial constraints within the electricity market remain a major concern, affecting settlement cycles and the overall stability of the sector.
Bello called for stricter compliance and improved financial discipline among market participants.
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Also on grid infrastructure limitations, he said ongoing efforts are focused on optimising existing assets while supporting expansion plans to improve transmission capacity and reduce system bottlenecks.
He identified compliance gaps as a key operational issue, noting that adherence to technical and market regulations is critical to maintaining grid stability and ensuring efficient market operations.
NISO, he said, is intensifying monitoring and enforcement mechanisms to close these gaps.
On renewable energy integration, Bello acknowledged the growing complexity of incorporating variable energy sources into the grid and disclosed that ongoing system studies, planning frameworks, and investment in technologies such as battery energy storage systems are being deployed to manage the transition.
He, however, expressed confidence that the measures being implemented would strengthen system reliability and market performance over time.