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NISO proposes joint group with states to link electricity markets

1 min read
The gist
  • NISO wants a technical working group with state governments to coordinate electricity markets under the 2023 Electricity Act.
  • Its MD, Abdu Bello Mohammed, also proposed an annual energy planning summit to forecast demand.
  • He said the aim is not to centralise markets but to make them work together on the national grid.

The Nigerian Independent System Operator (NISO) has proposed setting up a joint technical working group with state governments to help electricity markets across the country work together under the Electricity Act 2023.

The agency's Managing Director and Chief Executive, Abdu Bello Mohammed, made the proposal at the National Workshop on the Electricity Act 2023, held at the State House Auditorium in Abuja, according to statements reported by Tribune and ThisDay.

Mohammed also suggested an annual energy planning summit bringing NISO and the states together to assess energy resources and forecast how much electricity Nigerians will need.

He stressed that technical standards should be the same across the country, that data should be shared, and that state electricity markets must be properly coordinated with the national grid.

What it means for Nigerians

Since the 2023 law, states have been allowed to run their own electricity markets. That could mean more competition and better supply, but only if the state systems and the national grid do not clash.

Poor coordination between them risks the kind of instability that Nigerians already know too well: sudden outages, unstable supply and higher costs for homes and small businesses.

Mohammed said the plan is not to take power away from the states or centralise the market. The goal, he said, is for the different markets to work together within a reliable and well-managed system.

Other proposals he put forward include a national framework for coordinating states, making joint planning a permanent practice, and rolling out the changes in phases rather than all at once.

What happens next

The proposals were made at a workshop and are not yet policy. It is not clear from the reports whether state governments or the Federal Government have agreed to the working group or the summit.

Nigerians will be watching whether the talks translate into steadier power supply and fairer prices, or remain another round of meetings.

Sources

This story draws on reporting by:

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