Electricity: FG Unveils New Structure for TCoN

Daftar Isi

Major Restructuring of Nigeria's Power Sector

The Nigerian government has taken a significant step in modernizing the country's electricity sector by announcing the division of the Transmission Company of Nigeria (TCN) into two distinct entities. This move marks a pivotal development in the nation's efforts to improve the efficiency and reliability of its power supply.

New Structure for the Power Sector

The newly established organizations are the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP). The NISO will be responsible for managing the operational aspects of the power system, including the distribution of electricity from generating companies to distribution firms and eligible customers. Meanwhile, the TSP will oversee the physical infrastructure of TCN, such as transmission towers, power lines, and substations.

This restructuring is part of a broader strategy to address long-standing challenges within the energy sector. The Nigerian Energy Supply Industry (NESI) transmission sub-sector has been identified as a critical weak link in the energy value chain. According to Adebayo Adelabu, Nigeria’s former Minister of Power, this reorganization is necessary to align with the Electricity Act 2023 and meet industry demands.

Inauguration of the NISO

The board and management of the NISO were officially inaugurated by the government. During the Bureau of Public Enterprises' induction ceremony in Abuja, Abdu Mohammed, the Managing Director and CEO of NISO, emphasized the organization's commitment to enhancing the quality, availability, and reliability of electricity supply in Nigeria.

"Going by the law, the NISO has been inaugurated today by His Excellency, the Vice President of Nigeria, Kashim Shettima. We have been inaugurated this afternoon, and we have assumed the job role as described by the Electricity Act 2023," he stated.

Mohammed highlighted that the NISO's primary role is to bring about necessary changes in the system to ensure better availability, reliability, and quality of electricity supply. Additionally, the organization aims to foster an environment of transparency, discipline, and orderliness in the electricity business.

Leadership and Governance

The executive and non-executive board members of the NISO were appointed by President Bola Tinubu last month. This appointment underscores the government's commitment to ensuring effective leadership and governance in the power sector.

Chinasa Chika, a journalist with extensive experience covering the economy, technology, and capital market, noted that the restructuring of the entire electricity system is crucial for Nigeria. "Nothing seems to be working in the sector despite policy changes," she said.

Private Sector Enters the Market

In addition to the restructuring of TCN, there has been a growing trend of private institutions leaving the national grid to generate their own electricity. This shift comes amid ongoing challenges with power outages and grid collapses.

According to recent reports, seven firms, including the Nile University of Nigeria in Abuja, have secured licenses from the Nigerian Electricity Regulatory Commission to generate and distribute electricity. These institutions will produce up to 30MW of electricity under various arrangements.

This development highlights the increasing role of the private sector in addressing the country's energy needs. As more organizations seek alternative power solutions, it signals a potential transformation in how electricity is generated and distributed across Nigeria.

Conclusion

The restructuring of the Transmission Company of Nigeria represents a significant milestone in the nation's quest for a more reliable and efficient power sector. With the establishment of the NISO and TSP, the government aims to create a more transparent and disciplined environment in the electricity industry. At the same time, the growing participation of the private sector indicates a shift towards decentralized energy production, which could play a vital role in meeting the country's rising demand for electricity.