LAGOS, Nigeria – The Managing Director of the Nigerian Independent System Operator, Engr. Abdu Bello Mohammed, has said the decentralization of Nigeria’s electricity sector should create more investment opportunities and not lead to fragmentation.

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‎Mohammed spoke at the Africa Energy Leadership Summit 2026 holding at the Landmark Centre, Lagos, from Oct. 27 to 29.

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‎He said Nigeria’s electricity market needs better coordination in infrastructure planning, system operations and information management as more states establish their own electricity markets under the Electricity Act 2023.

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‎He explained that the emergence of multiple electricity markets, independent transmission providers, decentralized generation and new distribution networks was changing the demands on the electricity system.

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‎According to him, NISO is expanding its role beyond grid operations to serve as a neutral technical integrator, system coordinator and market facilitator to ensure that different institutions and market participants work efficiently.

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‎Mohammed clarified that NISO’s new role does not make it a regulator of state electricity markets and does not reduce the powers of the Nigerian Electricity Regulatory Commission and State Electricity Regulatory Authorities.

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‎He said effective coordination is important as state networks connect to the national transmission grid, exchange power across states or depend on shared transmission infrastructure. He warned that poorly coordinated investments could undermine the benefits of decentralization.

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‎To address this, he said NISO is adopting Integrated Resource Planning to ensure that investments in generation, transmission and distribution complement each other, are technically compatible and economically justified.

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‎He said digitalization and reliable industry data are essential for coordination, transparency and investor confidence. He disclosed that NISO is developing a centralized NESI data infrastructure to consolidate and share critical industry information.

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‎“Our vision is a Nigerian electricity industry that is decentralized in its development opportunities, integrated in its infrastructure planning, coordinated in its operations, transparent in its market administration and attractive to sustainable private investment,” he said.

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‎Mohammed urged state governments, regulators, investors and development partners to work with NISO to translate the opportunities in the Electricity Act 2023 into better electricity access, reliability and affordability.