NISO Pushes Joint Planning With States, Rules Out Centralised Market

The Nigerian Independent System Operator (NISO) has said it does not intend to centralise electricity markets in Nigeria, and has instead proposed joint planning with state governments to make the markets work together on one grid.

The managing director/CEO of NISO, Abdu Bello Mohammed, made the position known on Thursday in a presentation at the National Workshop on the Electricity Act 2023 at the State House, Presidential Villa, Abuja.

He said the aim is not to centralise electricity markets but to ensure they operate together effectively within a reliable and well-managed power system, according to a statement from NISO.

To achieve this, Mohammed proposed a technical working group bringing together the operator and state stakeholders. He said the group would deepen collaboration and help deliver an integrated electricity market in line with the Electricity Act 2023.

He also suggested an annual energy planning summit, where NISO and the states would review available energy resources and project future electricity demand.

Mohammed stressed the need for harmonised technical standards, shared data and strong coordination between state electricity markets and the interconnected national grid. His other recommendations were a national-state coordination framework, institutionalised integrated planning and a phased implementation roadmap.

The Act gives state governments a growing role in establishing and managing their own electricity markets, a point that ran through discussions at the two-day workshop.

The workshop was organised by the Office of the Vice President in collaboration with All States Management Partners Solutions Limited. It brought together stakeholders from across the Nigerian Electricity Supply Industry to discuss the ongoing reforms and the development of a multi-level electricity market.

Mohammed led NISO’s delegation to the opening day on Wednesday. It included the company secretary and general manager, Legal, Bashir Ahmed, and the assistant general manager, Legal, Hajiya Maryam Gabdo Malabu.

Participants explored how to use the Act’s provisions to attract investment, sustain market operations and improve power supply nationwide. Panel sessions examined the practical challenges of implementing the reforms and strategies for strengthening electricity markets across the country.