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NISO reduces N8b monthly transmission loses to 7.05%

The Nigerian System Operator (NISO) revealed that one of the worst challenges it grappled with from inception was high transmission losses at 10 per cent, gulping N8 billion monthly. Its

NISO reduces N8b monthly transmission loses to 7.05%
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April 8, 2026byThe Nation
4 min read
  • ...enforces compliance with free-governor model in GenCos
  • ...NERC orders DisCos to install IoT meters on feeders

The Nigerian System Operator (NISO) revealed that one of the worst challenges it grappled with from inception was high transmission losses at 10 per cent, gulping N8 billion monthly.

Its Managing Director, Abdu Bello Mohammed, made this known yesterday in Abuja at the first anniversary ceremony of NISO.

 According to him, NISO has reduced transmission losses to 7.05 per cent from 10 percent.

His words: "One of the greatest problems we encounter at the inception of NISO is that we recorded a very high transmission loss factor. At some point, it was close to 10 percent, costing about five to eight billion Naira in a month.

"We are working earnestly, and we have reduced it to our 7.05 at the moment. And we are working to also reduce it further to five or six percent so that we will meet the target of the latest."

He said the interventions are contributing to improve system discipline and reliability together.

Mohammed revealed that in order to ensure grid stability, NISO is working closely with the Transmission Company of Nigeria (TCN), Transmission Service Provider (TSP), Generation Companies (GenCos), Distribution Companies (DisCos) to advance the implementation of the free- governor model of the generating units.

This, according to him, is to ensure the frequency response of the grid.

He said with the backing order from the Nigerian Electricity Regulatory Commission (NERC) NISO is already enforcing the free- governor model.

Some GenCos, said Mohammed have complied with the enforcement of model that is expected to enhance grid reliability while some have refused to abide by it.

NISO boss said, "At the core of our mandate in ensuring a stable and resilient grid, we are working very closely with the Transmission Company of Nigeria, transmission service providers, our generation companies, and the distribution companies to advance implementation of the free-governor model operations of the generating units to improve frequency response.

"You will agree with me that the stability and reliability of the grid is a contributing factor. It is expected that the generators, transmission, and distribution companies will provide certain reliability services, one of which, and one of the most important, is the free-governor model operations of the generating units.

"And we have an order from the commission by enforcing on this. Substantially, a number of the generating units have complied with this, and we have seen a lot of improvement in the stability of the frequency, system frequency, thereby improving the grid reliability in general. However, some generators have failed to abide by this provision, and we are going to the level of enforcement."

Mohammed said that currently, the Nigerian Electricity Supply Industry (NESI) is operating manually, but with the telemetry system, it can have hourly settlements.

He vowed that NISO has planned to configure the settlement system, noting that other electricity market platforms are being developed to enhance data acquisition and real-time trading in the country.

He further said NISO has also strengthened the data acquisition, validation, and utilisation on a real-time visibility using its Internet of Things (IoT) scheme, and part of the completed Supervisory Control and Data Acquisition (SCADA) EMS.

Mohammed said that in the last year, NISO has expanded the system in terms of accuracy and data by applying the IoT metering system that was installed on most parts of the generating units and at the interfaces between transmission and generation, and also on some key transmission lines and substations.

He said eventually, the NESI is expected to have visibility of the national grid from generation through transmission lines, stations, and distribution.

The NISO boss said NERC has ordered the DisCos to install IoT metres on their 33kV and 11kV feeders, which is an ongoing project.

He vowed that at the project's end, the system would have end-to-end visibility—from generation through transmission, distribution, and eligible customers. This will enable system operators and market operators to gain real-time visibility and enhance effective grid management.

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