The Nigerian government has taken a significant step towards reforming the country’s electricity sector by unbundling the Transmission Company of Nigeria (TCN) into two entities.
The government, on Tuesday, inaugurated the board and management of the Nigerian Independent System Operator (NISO).
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The TCN, which coordinates the nation’s electricity transmission network, is one of 18 companies unbundled from the defunct Power Holding Company of Nigeria (PHCN) in April 2004. It was incorporated in November 2005 and issued a transmission licence a year later.
TCN’s licensed activities include electricity transmission, system operation and electricity trading. The company is currently fully owned and operated by the government.
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In December 2023, the Nigerian government hinted at plans to restructure the TCN into two entities.
Nigeria’s Minister of Power, Adebayo Adelabu, at the time, said the Nigerian Electricity Supply Industry (NESI) transmission sub-sector has been identified as a critical weak point in the electricity value chain.
“To align with the Electricity Act 2023 and the industry’s demands, it’s time to restructure the Transmission Company of Nigeria (TCN) into two entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP),” Mr Adelabu said at the time.
Under the new structure, the TSP will oversee TCN’s physical infrastructure, including transmission towers, power lines, and substations, while the NISO will take charge of system operations, managing load allocation from generation companies to distribution companies and eligible customers.
Speaking at the induction ceremony organised by the Bureau of Public Enterprises in Abuja on Tuesday, Abdu Mohammed, managing director/chief executive officer of NISO, explained that the company is committed to enhancing the availability, reliability, and quality of supply of electricity to Nigerians.
“You recall the passage of the bill that enacted the Electricity Act 2023, as amended, and the provisions therein for the creation of the Nigerian Independent System Operator. So, going by the law, the NISO has been inaugurated today by His Excellency, the Vice President of Nigeria, Kashim Shettima. We have been inaugurated this afternoon, and we have assumed the job role as described by the Electricity Act 2023.
“Our major role in the power industry is to bring the needed changes in the system that will enhance availability, reliability, and quality of supply of electricity to Nigerians. In addition to that, we’re supposed to create an atmosphere, an environment of transparency, discipline, and orderliness in the electricity business in Nigeria, meaning that participants in generation, transmission, distribution, and eligible customers behave in a passionate manner in line with the provisions of the market rules and the grid code,” he said.
He further explained that the coming on board of the NISO Board of Management will usher these qualities that are required to make the power sector tick, just like other power sectors in bigger jurisdictions.
“Now it’s a journey. It’s not a one-off business. The beginning of the journey starts today. We begin today, and we’re going to set the ground running. We hit the ground running. Tomorrow, we’re going to Oshogbo, the National Control Center, to make sure that our operators are aligned with our vision, mission, objectives, and goals as enshrined in the Electricity Act 2023.
“Furthermore, we’re going to have interfaces with generation companies, with the TSP, with the distribution companies, and eligible customers. Those interfaces must be coordinated well, managed well, to make sure that the generation of electricity, transmission of electricity, distribution, and utilisation of electricity is in line with the rules and is in favour of the numerous Nigerian customers.
“We understand the challenges in the industry, and we’re going to tackle them pragmatically and systematically. We’re going to deal with these problems, like I said, it’s a journey, we’re starting from somewhere, and gradually, definitely with speed and quality, we shall be there to make sure that Nigerians enjoy a steady, reliable electricity supply in the nearest period,” he said.
Last month, President Bola Tinubu appointed executive and non-executive board members for the newly established NISO.
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Adesegun Akin-Olugbade was appointed the board chairman, while Abdu Mohammed, an engineer, was appointed managing director.
The president has also appointed four Executive Directors: Nafisatu Ali for Systems Operation, Shehu Abba-Aliyu for Systems Planning, Edmund Eje for Market Operations, and Babajide Ibironke for Finance and Corporate Services.
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