The establishment of the Nigerian Independent System Operator (NISO), under the Electricity Act 2023, by the Federal Government, is a significant step towards reforming Nigeria’s power sector.

Energy analyst, Samuel Caulcrick, told journalists in Lagos yesterday that the new agency would also play a critical role in unbundling the Transmission Company of Nigeria (TCN) and improving the stability and efficiency of the national power grid.

He explained that NISO would primarily oversee electricity supply operations, including generation dispatch and grid stabilisation, to reduce the frequent network collapses that had long frustrated consumers and businesses alike.

Caulcrick added that the agency is also tasked with broader market coordination to ensure smoother interaction between generation, transmission, and distribution companies.

He pointed out that the success of NISO would depend not only on managing the supply side but also on addressing the demand side of power consumption.

He said: “If NISO manages the supply side effectively, its success will depend on bridging this with effective demand-side management to establish a truly resilient system.”

Caulcrick noted that one persistent challenge in the energy sector was the widespread non-compliance with electrical wiring standards in homes and businesses.

He mentioned that poor installation practises by unqualified technicians often overstress the distribution network, leading to technical losses and unsafe conditions.

He expressed that strict licensing and certification of electricity technicians, in line with the Nigerian Electricity Supply and Installation Standards (NESIS) Regulations 2015, is a crucial step to ensure that only qualified personnel handle installations.

This, he argued, would help to reduce technical losses, improve safety, and maintain a more stable municipal power supply.

He maintained that if NISO succeeded in effectively linking supply-side management with regulated demand-side practises, Nigeria could see a major turnaround in the reliability of its electricity services.

The Federal Government established NISO in 2025 as a key and separate entity responsible for managing the nation’s electricity grid and market, following the unbundling of TCN.