TCN Restructured to Enhance Efficiency and Oversight

By Iyojo Ameh

In a bid to enhance the operational efficiency of Nigeria’s power sector, President Bola Tinubu, in conjunction with the Nigerian Electricity Regulatory Commission (NERC), has announced the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO), marking a significant restructuring of the Transmission Company of Nigeria (TCN).

The decision was communicated through an official order signed by TCN’s Chairman, Mr.

As outlined in the order, TCN will undergo a transfer of all market and system operation functions to the newly formed NISO, in accordance with the provisions set forth in the Electricity Act 2023.

This strategic move aims to provide clearer guidelines for the incorporation and licensing of the independent system operator (ISO), thereby optimizing the management of Nigeria’s power infrastructure.

Previously, TCN held Transmission Service Provider (TSP) and System Operations (SO) licenses issued by NERC. With the establishment of NISO, TCN will divest its assets and liabilities related to market and system operations to the newly created entity, streamlining its focus on core transmission functions.

The Bureau of Public Enterprises (BPE) has been tasked with overseeing the incorporation of a private company limited by shares under the provisions of the Companies and Allied Matters Act (CAMA) by May 31.

This newly formed entity, named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume responsibility for market and system operation functions, in line with the statutory requirements outlined in the Electricity Act and TCN’s system operation license.

NISO’s mandate encompasses the management of assets and liabilities associated with market and system operations on behalf of market participants and consumer groups. Additionally, the newly established ISO will play a pivotal role in negotiating contracts for ancillary services with independent power producers and generation licensees, ensuring the smooth operation and reliability of Nigeria’s national grid.