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FG targets 8,000MW power supply boost in 18 months through independent grid management

Obah Sylva by Obah Sylva
July 17, 2025
in News
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FG targets 8,000MW power supply boost in 18 months through independent grid management
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The Federal Government has projected a major leap in Nigeria’s electricity supply, targeting an increase to 8,000 megawatts within the next 12 to 18 months, fueled by improved management of the national power grid under the newly operational Nigerian Independent System Operator (NISO).

Speaking during a leadership retreat in Abuja to inaugurate NISO’s top management, the Director General of the Bureau of Public Enterprises (BPE), Mr. Ayodeji Gbeleyi, said that while the country’s installed generation capacity stands at over 14,000 megawatts, actual daily output continues to hover around 5,500MW. He emphasized that with better grid efficiency and critical investments in transmission and distribution, Nigeria could unlock and distribute more of its untapped capacity.

Gbeleyi noted that NISO, now operating as an independent body after its unbundling from the Transmission Company of Nigeria (TCN), carries the crucial mandate of managing the national grid impartially. He stressed that NISO must ensure efficient dispatch coordination, fair market settlements, and equitable grid access, all free from political or corporate interference.

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He stated that the path to 8,000MW is realistic, considering the available generation capacity. “We’re currently wheeling about 5,500 megawatts daily. But the nameplate generation capacity is over 14,000MW. So it’s not far-fetched to aim for a 50 percent increase in supply within the next year to 18 months. The key lies in scaling grid capacity and building resilience across distribution infrastructure,” Gbeleyi said.

Highlighting the government’s financial commitment to reforming the power sector, he disclosed that Nigeria has secured a $500 million World Bank loan to upgrade the national distribution network. He revealed that this fund will provide at least 3.2 million electricity meters, while a presidential initiative will deliver an additional 2 to 3 million meters to address metering gaps and improve service delivery across the country.

Also speaking, the Chairman of the NISO Board, Dr. Adesegun Akin-Olugbade, described NISO as more than just a new institution, it represents a transformative concept in power sector governance. According to him, NISO is envisioned as a truly independent system operator that not only manages the real-time operations of the grid but also coordinates the long-term development of Nigeria’s electricity market with neutrality and strategic foresight.

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“This is not just about moving electricity from point A to B. It’s about stabilizing an entire economy. When power fails, every sector, from industry to healthcare and education, feels the shock,” he said.

In an interaction with journalists, the Managing Director and CEO of NISO, Engr. Abdu Bello, reinforced the optimism, affirming that the 8,000MW target is not just ambitious but achievable. He said the retreat was part of a wider strategic roadmap designed to sharpen the agency’s focus, attract private sector investments, and ensure NISO stays on course.

“We must put our house in order and remain focused. With the right structure, planning, and private investment, this goal is within reach,” Bello said.

Backing the initiative, Executive Director of Portfolio Management at the Ministry of Finance Incorporated (MOFI), Mr. Tajudeen Ahmed, pledged MOFI’s full support as a shareholder in NISO. He assured that the federal investment agency is committed to helping NISO achieve its mandate and drive long-overdue reforms in Nigeria’s electricity sector.

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