The Managing Director and Chief Executive Officer of the Nigerian Independent System Operator, Abdu Bello, has revealed that Nigeria’s power sector loses between N5bn and N8bn every month due to transmission inefficiencies.
Bello disclosed this on Wednesday during the organisation’s first anniversary celebration held at its headquarters in Utako, Abuja.
He presented a detailed scorecard of reforms and operational milestones achieved since the operator was established.
According to him, the system operator has begun implementing targeted interventions aimed at reducing losses and improving the stability of the national electricity grid.
The Nigerian Independent System Operator was officially created on April 30, 2024, by the Nigerian Electricity Regulatory Commission following the unbundling of the Transmission Company of Nigeria under the Electricity Act 2023.
Speaking on the challenges inherited by the operator, Bello said one of the most critical issues at the time of its establishment was the high transmission loss factor.
He explained that the loss rate was close to 10 per cent when the organisation commenced operations, leading to significant financial losses in the power sector.
“One of the greatest problems we encountered at the inception of NISO is that we recorded a very high transmission loss factor. At some point, it was close to 10 per cent, costing about N5bn to N8bn monthly,” he said.
Bello noted that the operator has since introduced several operational measures to reduce inefficiencies within the transmission network.
According to him, these interventions are gradually improving grid performance and reducing the financial impact of transmission losses on the electricity value chain.
He added that strengthening the transmission system remains a critical step toward stabilising Nigeria’s power sector and ensuring reliable electricity supply across the country.
The anniversary event also highlighted the organisation’s broader reform agenda aimed at enhancing operational efficiency, improving coordination across the electricity value chain, and ensuring the effective management of the national grid.
Industry experts say reducing transmission losses is key to addressing Nigeria’s long-standing electricity challenges and improving the financial viability of the power sector.
