NISO MD Calls for Stronger Synergy Among NESI as he Warns Against Negative Impact of Decentralization
By Our Reporter
Abuja (Core Reporters) The Managing Director/Chief Executive Officer of the Nigerian Independent System Operator (NISO) Engr. Abdu Bello Mohammed, has called for stronger synergy among stakeholders in the Nigerian Electricity Supply Industry (NESI), warning that the decentralization of the sector should create more opportunities for investment and growth rather than result in fragmented infrastructure and poorly coordinated development.
Engr. Mohammed, who made the call at the ongoing Africa Energy Leadership Summit 2026, holding at the Landmark Centre, Lagos, from October 27 to 29, said Nigeria’s evolving electricity market required a more coordinated approach to infrastructure planning, system operations and information management as more states establish their own electricity markets and regulatory institutions under the Electricity Act 2023.
He explained that the emergence of multiple electricity markets, independent transmission infrastructure providers, decentralized generation and new distribution networks was changing the demands on the country’s electricity system.
Mohammed said NISO was expanding its role beyond conventional grid operations to serve as a neutral technical integrator, system coordinator and market facilitator, providing the planning, operational and market coordination interfaces needed to ensure that different institutions and market participants function efficiently within the wider electricity ecosystem.
He, however, clarified that NISO’s evolving role did not make it 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 had become increasingly important as state electricity networks connect to the national transmission grid, exchange electricity across state boundaries or depend on shared transmission infrastructure. But poorly coordinated investments could undermine the benefits of decentralization.”
To address these challenges, Mohammed said NISO was advancing the application of Integrated Resource Planning methodologies to ensure that investments in generation, transmission and distribution complemented one another, were technically compatible, economically justified and aligned with the industry’s long-term development needs.
While identifying digitalization and access to reliable industry data as essential to improving coordination, transparency and investor confidence, he disclosed that NISO was pursuing the development of a centralized NESI data infrastructure to consolidate, validate, manage and share critical industry information.
In his words, “Our vision is a Nigerian electricity industry that is decentralized 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 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 measurable improvements in electricity access, reliability, affordability and economic development.
