By Stella Odueme
The Managing Director and Chief Executive Officer of the Nigerian Independent System Operator (NISO), Engr. Abdu Bello Mohammed, has called for stronger collaboration among stakeholders in the Nigerian Electricity Supply Industry (NESI) to ensure that decentralisation drives investment and growth rather than infrastructure fragmentation.
Mohammed made the call at the Africa Energy Leadership Summit 2026, holding at the Landmark Centre, Lagos, from October 27 to 29.
He said the implementation of the Electricity Act 2023, which allows states to establish their electricity markets and regulatory institutions, had created new opportunities for investment but also increased the need for coordinated infrastructure planning, system operations and information management.
According to him, the emergence of multiple electricity markets, independent transmission infrastructure providers, decentralised generation and new distribution networks is reshaping the country's electricity landscape.
He explained that NISO was expanding its functions beyond conventional grid operations to serve as a neutral technical integrator, system coordinator and market facilitator.
Mohammed said the initiative would provide the necessary planning, operational and market coordination mechanisms to ensure that institutions and market participants operate efficiently within the broader electricity ecosystem.
He clarified, however, that NISO's expanded role would neither make it the regulator of state electricity markets nor undermine the statutory responsibilities of the Nigerian Electricity Regulatory Commission (NERC) and State Electricity Regulatory Authorities.
The NISO chief stressed that effective coordination was essential as state electricity networks connected to the national transmission grid, exchanged power across state boundaries or relied on shared transmission infrastructure.
He warned that investments undertaken without proper coordination could undermine the benefits of decentralisation and lead to inefficient infrastructure development.
To prevent such challenges, Mohammed said NISO was promoting Integrated Resource Planning methodologies to ensure that investments in generation, transmission and distribution were complementary, technically compatible, economically viable and consistent with the industry's long-term development objectives.
He also identified digitalisation and access to reliable industry data as critical to improving coordination, transparency and investor confidence.
He disclosed that NISO was working towards establishing a centralised NESI data infrastructure to consolidate, validate, manage and share essential electricity industry information.
Mohammed said the initiative was aimed at building an electricity industry that offers decentralised investment opportunities while maintaining integrated infrastructure planning, coordinated operations and transparent market administration.
He urged state governments, regulators, investors, development partners and technology providers to collaborate with NISO in harnessing the opportunities provided by the Electricity Act 2023.
He added that effective collaboration would be crucial to translating the ongoing reforms into tangible improvements in electricity access, reliability, affordability and overall economic development.