The newly established Nigerian Independent System Operator (NISO) must operate free from political interference if it’s to truly transform Nigeria’s electricity sector, experts have advised.
Mr. Oyebode Fadipe, former General Manager of Public Affairs at the Abuja Electricity Distribution Company (AEDC), emphasized that for NISO to function effectively, it must manage energy distribution like a private company—focused solely on efficiency, not politics.
Speaking with The Nation, Fadipe said, “Now that NISO is structured as a private firm, it has the opportunity to prioritize technical efficiency over political influences.
It should function independently, unlike the former structure under the Transmission Company of Nigeria (TCN), which juggled multiple roles and faced limitations in independence and market discipline.”
NISO was officially established following the provisions of the Electricity Act, 2023, and a directive from the Nigerian Electricity Regulatory Commission (NERC) dated April 30, 2024. The new agency commenced operations on May 1, 2024.
President Bola Ahmed Tinubu approved the appointment of Dr. Adesegun Akin-Olugbade as the Board Chairman and Engr. Abdu Mohammed as the Managing Director. Vice President Kashim Shettima inaugurated the board last week.
Fadipe, now a Lead Power Sector Analyst at Sage Consulting, recalled that for the first decade of Nigeria’s privatized power sector, TCN managed three vital components: load management, infrastructure (towers and lines), and market operations. According to him, this was a cost-saving measure at the time.
“But with NISO now in place,” he added, “we’re taking a bold step toward full privatization of TCN—something market stakeholders have been demanding for years.”
However, not everyone is optimistic.
Chief Princewill Okorie, Executive Director of the Electricity Consumer Protection Advocacy Centre (EPAC), expressed concerns about NISO’s independence. He pointed out that the new agency is still staffed by former TCN personnel, which may limit real change.
“This is just a change of name,” Okorie argued. “The same TCN staff now work under NISO. Unless the government recruits independent staff, the promise of independence will remain unfulfilled.”
Despite these differing views, all eyes remain on NISO’s performance in the coming months, as it takes on the critical role of energy load management in Nigeria’s electricity market.
What’s your take on NISO’s new role in the power sector? Do you believe true independence can be achieved? Share your thoughts in the comments and stay tuned to NIGPOST for updates on Nigeria’s energy reforms.
Leave a Reply