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NISO cuts transmission losses to 7% from 10% in one year

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The Managing Director/Chief Executive Officer of the Nigerian Independent System Operator, Abdu Bello, has disclosed that Nigeria’s power sector was losing between N5bn and N8bn monthly to transmission inefficiencies, even as he revealed that targeted interventions by the operator have begun to cut losses and improve grid stability.

Bello made this known on Wednesday during the organisation’s first anniversary celebration held at its headquarters in Utako, Abuja, where he presented a detailed scorecard of reforms and operational milestones recorded since its establishment.

Recall that NISO was officially created on April 30, 2024, by the Nigerian Electricity Regulatory Commission following the unbundling of the Transmission Company of Nigeria under the Electricity Act, 2023.

Speaking on one of the most pressing challenges inherited by the operator, Bello said the transmission loss factor at inception was alarmingly high, with severe financial implications for the power sector.

“One of the greatest problems we encountered at the inception of NISO was that we recorded a very high transmission loss factor. At some point, it was close to 10 per cent, costing about N5bn to N8bn monthly,” he said.

He, however, noted that deliberate operational measures have started yielding results.

“We are working on it, and we have reduced it to about 7.05 per cent at the moment. We are also working to reduce it further to about five or six per cent so that we will meet the target of the regulators,” Bello added.

Adopting a broader tone, the NISO boss said the past year had been defined by institution-building, system stabilisation, and market reforms aimed at repositioning Nigeria’s electricity sector.

“Today, we are not just celebrating one year of existence; we are reflecting on one year of deliberate effort, institutional progress, and measurable impact,” he said.

He explained that NISO was established to function as an independent system operator with responsibility for system operations, market administration, planning, and enforcement of grid codes and market rules.

“This mandate is central to Nigeria’s power sector reform. It is about ensuring that our grid is stable, our market is credible, and our planning is coordinated so that electricity can effectively support economic growth,” Bello stated.

On institutional development, he said the organisation had prioritised governance and coordination across the electricity value chain.

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“We have established governance and management structures at both board and executive levels, and strengthened coordination from generation through transmission to distribution and eligible customers,” he said.

A major highlight of the address was NISO’s push to digitise grid operations through advanced monitoring systems.

Bello disclosed that the operator is accelerating the deployment of Supervisory Control and Data Acquisition/Energy Management Systems to enable real-time grid visibility.

“On grid visibility, monitoring, and control, a key priority has been improving our ability to see, understand, and manage the national grid in real time. In this regard, we have accelerated the implementation of the SCADA EMS project, working very closely with the Nigerian Electricity Regulatory Commission, NERC, to ensure that the grid monitoring infrastructure SCADA EMS tool, which is a veritable tool for the system operations, is completed and operational.

“It’s a work in progress and we are seeing progress on this. We have also reached advanced stages in the deployment of the telemetry system across the grid at the electricity trading points,” he said.

He added that the organisation was also deploying telemetry systems and Internet-of-Things-based metering infrastructure across generation units, transmission lines, and substations.

“By the time we complete this project, hopefully before the end of the year, we shall have full visibility of the national grid from generation through transmission, substations, and distribution,” he stated.

According to him, the initiative would enable near-real-time electricity market settlements and significantly improve operational efficiency.

“Currently, we operate largely manually, but with telemetry, we can achieve hourly settlements or even real-time market operations,” he added.

Bello also revealed that NISO has intensified efforts to tackle grid instability and recurring system collapses through technical reforms and stricter compliance enforcement.

“Thank God, the regulators, NERC, have already ordered the distribution companies to install IoT meters on their 33 kV and 11 kV feeders, which is an ongoing project. So at the end of this project, we shall have end-to-end visibility of the system from generation through transmission, distribution, and eligible customers.

“Thereby, enabling our system operators and market operators to have visibility on a real-time basis and enhancing effective management of the grid. With that, our efficiency and effectiveness in managing the grid will be tremendously enhanced. These efforts are laying the foundation for full visibility and a data-driven grid and market operations environment.

“At the core of our mandate is ensuring a stable and resilient grid. We are working closely with generation companies and other stakeholders to implement the free-governor mode of operation of generating units to improve frequency response,” he said.

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He noted that compliance with this directive has already improved grid frequency stability.

“Substantially, a number of generating units have complied, and we have seen improvements in system frequency and overall grid reliability,” he said, while noting that enforcement actions were ongoing against defaulters.

He further disclosed plans to introduce grid “islanding”, a strategy that segments the national grid to prevent widespread outages.

“We are developing grid islanding to enhance resilience. Disturbances in one segment will not cascade across the entire grid. This will significantly reduce the risk of total system collapse,” he explained.

On market operations, Bello said NISO has taken steps to improve transparency, enforce compliance with market rules, and strengthen coordination among industry players.

“We have enhanced monitoring and enforced compliance with the grid code, market rules, and metering standards. We are also upgrading market systems to enable real-time operations and improved analytics,” he said.

He added that NISO is playing a central role in coordinating emerging state electricity markets following recent sector reforms.

“With states now able to establish their own electricity markets, there must be coordination between state systems and the national wholesale market. That interface is being managed by NISO,” he said.

The NISO boss also linked recent fluctuations in power generation to gas supply challenges, stressing the need for stronger coordination between the power and gas sectors.

“You will have noticed a slight drop in generation capability recently due to gas supply constraints. This coordination between the power sector and gas suppliers is very critical,” he said.

He assured that regulators and stakeholders are working to address the issue and prevent future disruptions.

In a significant development, Bello disclosed that Nigeria has achieved trial synchronisation of its national grid with the West African power system, opening new opportunities for cross-border electricity trade.

“On November 8, 2025, we successfully synchronised the Nigerian grid with the West African power pool, positioning Nigeria for enhanced regional power trade,” he said.

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He explained that the integration would allow Nigeria to export excess power and earn foreign exchange.

“This gives us a bidirectional opportunity to either supply power to the region or import when necessary. It also creates the potential to earn hard currency, which can be reinvested to improve domestic capacity. By

These interventions are contributing to improving system discipline and reliability together. On electricity market development and strengthening, we have made deliberate efforts to strengthen market credibility and transparency.

“Over the past year, we have enhanced monitoring and enforced compliance with the market rules, grid code, and metering standards. We have also improved coordination among market participants to support orderly market operations.

“We have initiated upgrades to market management systems to enable real-time operations, efficient settlement, and improved analytics. We have strengthened data transparency to support informed decision-making in the market space,” he added.

NISO was carved out of the Transmission Company of Nigeria as part of sweeping reforms introduced by the Electricity Act, 2023, to liberalise and decentralise Nigeria’s power sector.

The reform seeks to separate system operations from transmission ownership, improve transparency, and create a more competitive electricity market.

“As we enter our second year, our focus is clear—to translate these foundations into measurable
sector-wide impact. Our priorities include: deepening grid visibility and real-time operational control, strengthening system reliability and resilience, enhancing transparency and efficiency in market operations, enhancing data-driven and technology anchored system planning, supporting coordinated development of national and subnational electricity markets, advancing renewable integration and energy transition initiatives, continuing to invest in staff welfare and institutional capacity and ultimately, our success will be measured by three outcomes: a stable grid, a credible market, and strong investor confidence,” the MD concluded.

Despite these reforms, Nigeria’s power sector continues to face structural challenges, including transmission constraints, gas supply shortages, liquidity issues, and weak infrastructure.

NISO’s first-year performance signals a shift towards data-driven grid management and coordinated planning, although sustained investment and policy consistency will be required to deliver long-term stability.

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Petrol nears N1,400/litre as Dangote hikes price

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The pump prices of Premium Motor Spirit (petrol) are nearing N1,400 per litre in many parts of the country as the United States and Iran fail to agree on a ceasefire that should lead to the reopening of the Strait of Hormuz.

As the crisis in the Middle East lingers, coupled with the exit of the United Arab Emirates from the Organisation of the Petroleum Exporting Countries on Tuesday, the prices of petrol have continued to rise.

From $105 per barrel on Monday, Brent crude jumped to $118 on Wednesday. As a result, the Dangote Petroleum Refinery jerked up its petrol gantry price from N1,200 to N1,275 per barrel.

Price data obtained from Petroleumprice.ng and confirmation from a Dangote refinery official on Wednesday revealed that the refinery raised its petrol loading price from N1,200 per litre to N1,275 per litre, while coastal supply prices climbed to N1,215 per litre.

Another source familiar with the situation disclosed that the refinery halted its pro forma invoice entry process at about 4 pm on Tuesday, effectively disrupting normal supply scheduling across its loading system. The suspension, according to the sources, led to an immediate stoppage of both petrol and diesel sales to marketers.

This is coming as the Nigerian National Petroleum Company Limited raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, according to a report by Oilprice.com.

The report stated that Nigeria was reaping the benefits of the US-Iran war, as the NNPC increased the price of its flagship grade, Bonny Light, by $6.13 per barrel for May compared to April. Similarly, Forcados was also raised by $7.01 per barrel.

“Nigeria reaps the benefits of the Iran war. Nigeria’s national oil company NNPC has raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, hiking its flagship grade Bonny Light by a whopping $6.13 per barrel compared to April, while Forcados is up by $7.01 per barrel,” the report stated.

The PUNCH had on Wednesday projected that the development might indicate that the Dangote Petroleum Refinery could pay more for crude, thereby pushing up fuel prices.

It was observed that filling stations wasted no time in moving up their pump prices from an average of N1,250 to over N1,300 per litre on Wednesday in Lagos and other states in the South-West. Checks by The PUNCH showed that filling stations in Lagos and Ogun states sold petrol at prices ranging from N1,315 to N1,350 as of Wednesday.

The NNPC filling stations at the Mowe/Ibafo axis of the Lagos-Ibadan Expressway sold petrol at N1,315 a litre, while Mobil offered N1,320.

The prices depend on the location. In the north and other locations far from the Dangote refinery, petrol prices were raised to around N1,400 per litre. People living in Ogun border communities said a litre of petrol is close to N1,700 because the Federal Government has not allowed the supply of petroleum products in their areas.

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Speaking, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said prices may continue to soar unless US President Donald Trump allows peace to reign in the Middle East.

Gillis-Harry said fuel sellers have been subjected to sudden price volatility that makes business decisions somewhat difficult. He regretted that the Federal Government is not taking steps to support the masses despite making more gains from the high oil prices.

“This is what we have been introduced to, price volatility. And then the government is not making any statements about it, so it’s worrisome. At least, the government could come up with some measures. We are making some gains now on the price of crude oil. The government can give some back to reduce the cost of transportation, so food is not going to be expensive, along with a few other things. That’s what we have advised,” he said.

The PETROAN boss said the price of petrol could go above N1,500 per litre if the Middle East crisis is not de-escalated.

“If you go back to our predictions, I stated it there because Mr Trump is not very clear as to what he wants, in my opinion; if it is to decimate the Iranian nuclear facility or if it is to take over the crude oil as they are taking over Venezuela’s. I don’t think we know what he wants exactly. So we are not sure we are seeing the end of that crisis.

“You can see that the UAE has opted out of OPEC, and the speed at which they are opting out is very fast, which is why we have also advised that Nigeria should think out of the box and look at how production can be improved. It doesn’t need any rocket science; we have the reserves. It is to encourage investors and make sure that host communities are at peace and that violence is no longer the focus. The assets that were discovered in Bauchi and elsewhere, in which billions of dollars were invested, have not achieved anything.

“So we should pay attention to all those areas and increase our production value and production speed so we can at least clearly put 2 million barrels into domestic refining. That will be much better because we will then become a refining hub to guarantee jobs, improve businesses, and make our economy more active. People will work for reasonable money and pay better taxes without grumbling. That’s where we are,” he advised.

Gillis-Harry said the Dangote refinery showed its influence by changing prices at will, saying retailers will keep adjusting. “Dangote has increased the price again because he is the lord of the manor. So we will keep adjusting,” he added.

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The PETROAN boss maintained that the NNPC oil price hike contributed to the petrol price increase, saying, however, that every single increase was a result of the closure of the Strait of Hormuz.

“Every single increase from any quarter is because we are not trading locally. All products in Nigeria are still internationally benchmarked. Regardless of whether we’re paying naira for crude for local refining, it’s still measured in the dollar equivalent. The only thing it has done is that you’re not going to scramble for forex to buy the crude that you’re going to refine here.

“We advise that that privilege should be extended to all refineries, be they modular or not, at least the refineries that are producing PMS or are about to produce,” he said.

A senior management official of the Dangote Group had revealed on Monday that the Dangote refinery had been subsidising the petrol and diesel it was selling to the Nigerian market.

According to the official, who spoke to our correspondent in confidence due to the lack of authorisation to speak, the company’s N1,200/litre ex-depot price for petrol was below the competitive market price, considering the jump in crude prices following the US-Iran war.

The PUNCH reports that the war in the Middle East triggered an oil price surge when the Strait of Hormuz was blocked by Iran. From $66 per barrel on February 28, Brent, the global benchmark for crude, jumped above $100 a barrel.

As a result, Dangote raised its petrol gantry price from N774 to N1,275 as of the time of filing this report. The oil price hike also affected diesel and aviation fuel.

In their reactions to the rising oil prices due to the US-Iran war, local refiners urged the Federal Government to drop the use of international pricing benchmarks for crude supplied to domestic plants, saying the current structure inflates costs and undermines local refining.

The spokesperson for the Crude Oil Refiners Association of Nigeria, Eche Idoko, said in an interview that the association had consistently pushed for a domestic pricing arrangement that reflects Nigeria’s peculiarities.

According to Idoko, crude supplied to local refineries should be priced based on locally designed pricing instead of using Brent as a benchmark.

“If you are using Brent to benchmark our pricing, the factors that are affecting the Brent pricing will still affect the price at which you are landing crude here. What we have always insisted on is that those elements in Brent that do not apply to the trade between the local refinery and the oil producers should be discounted. And like that, you get the actual cost of crude for local refineries,” he said.

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An economist, Bismarck Rewane, said, “One of the options that can be explored is that the Federal Government of Nigeria agrees to sell crude at a particular price to the Dangote refinery with the assurance that the price of refined products does not increase.”

Energy economists have also called on the Federal Government to take steps towards assuaging the effects of rising fuel prices on the masses. However, the government has yet to respond to the calls even as inflation figures rise again.

US doubles down on Iran

Meanwhile, the US continues to seek to pile pressure on Iran with the naval blockade outside the Strait of Hormuz as the Trump administration signals the blockade is yielding results and will not be lifted anytime soon, Oilprice.com reports.

“While the surviving IRGC leaders are trapped like drowning rats in a sewage pipe, Iran’s creaking oil industry is starting to shut in production, thanks to the US blockade,” US Treasury Secretary Scott Bessent said in a post on X on Tuesday.

“Pumping will soon collapse. Gasoline shortages in Iran next!” Bessent added.

In another post, the secretary wrote that “Kharg Island, Iran’s primary oil export terminal, is soon nearing storage capacity, which will force the regime to reduce oil production, resulting in an additional approximately $170m per day in lost revenue and causing permanent damage to Iran’s oil infrastructure.”

“Treasury will continue to exert maximum pressure, and any person, vessel, or entity facilitating illicit flows to Tehran risks exposure to US sanctions,” Bessent added.

US President Donald Trump has instructed aides to prepare for an extended blockade of Iran, US officials told the Wall Street Journal earlier this week.

The President preferred to keep the blockade and try to choke off Iran’s oil exports and revenues to the other options, such as renewing bombing of Iran or walking away from the war, the officials told the Journal.

Meanwhile, at least six Iranian tankers laden with oil are loitering in a cluster near the port of Chabahar in Iran, outside the Strait of Hormuz but just inside the US naval blockade line, satellite images and maritime intelligence analyses have shown.

The cluster of about half a dozen Iranian vessels signals that Iran continues to load oil on Iranian tankers that are trying to leave the Middle East region. On the other hand, the piling up of ships outside the Strait of Hormuz but inside the US blockade line suggests that the American interception of vessels is working to at least delay Iranian oil exports.

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Job losses loom as more Inland Container Terminals shut down

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Massive job losses loom following the shutdown of ITC Container Terminals, Alliance Container Terminal, and Creseada Container Terminals, all in Lagos, due to lack of business and patronage from seaport terminals at Apapa and Tin-Can Ports.

Disclosing this to Tribune Online exclusively in Lagos, the general secretary of the Association of Bonded Terminals Operators of Nigeria, Mr Haruna Omolajomo, explained that out of over 40 Inland Container Terminals in Lagos, only a few are still operating, albeit below an optimal level.

According to Mr. Haruna Omolajomo, “In Lagos alone, we have over 40 indigenous bonded terminals operating and they have spent more than N5trillion to equip their terminals in terms of infrastructure and machinery.

“I can tell you authoritatively that none of the over 40 indigenous bonded terminals are operating beyond 10 percent due to non-patronage.

“Many have borrowed money from commercial banks to equip their container terminals and due to a lack of patronage from shipping companies and seaport terminal operators, they are struggling to repay bank loans.

“For some that are lucky, they are battling high blood pressure. For some, who are not lucky, they are already six feet below the ground.”

On the numbers of inland container terminal operators that have shut down in Lagos, the General Secretary of the Association of Bonded Terminals Operators of Nigeria, Mr. Haruna Omolajomo, revealed that, “Some inland container terminal operators have shut down.

“We have ITC Container Terminals, Alliance Container Terminal and Creseada Bonded Terminals. This operators are no longer in operation. Between these three bonded terminals, they employed 400 staff in all, and all the workers have been laid off.

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“Currently, we have some that are operating below five percent and may close shop any time soon. I am talking about Mid Maritime Container Terminal, Port Express Container Terminal, Duncan Container Terminal and Sapid Container Terminal.

“They are all operating below 5 percent and have between them close to 800 workers. They can fold up anytime from now if the situation persists like this, and that means more workers off jobs.”

On likely way forward, Mr. Omolajomo explained that the federal government needs to make a law that allows indigenous container terminal operators to have a certain percentage pf cargoes stemmed to them from the ports.

“We have tried all we could to get government attention in the past. We have gone to the Presidency. We have gone to the National Assembly.

“Sometime ago, the National Assembly set up a panel of enquiry headed by Senator Olugbenga Obadara. At the end of the day, it all amounted to nothing.

“Up till now, we are not relaxing. We are still making efforts to get government attention, and our demand is that we are not saying government should not have anything to do with these foreign companies, but should respect local content and allow us to also do business.

“When cargoes arrive at the ports, the government should ensure that indigenous bonded terminals get 30 percent of such cargoes.

“The government needs to make a policy that it’s a MUST that port operators patronize indigenous container terminals.

“When indigenous bonded terminals get cargoes from the port operators, it will increase the revenue that is accruable to the federal government. This is aside from creating jobs for more Nigerians.”

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CBN increases ATM card issuance fee

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The Central Bank of Nigeria (CBN) has increased the fee for the issuance or replacement of ATM cards from ₦1,000 to ₦1,500, with effect from May 1, 2026.

The adjustment is contained in a revised Guide to Charges by Banks and Other Financial Institutions released by the apex bank on Thursday, as part of efforts to standardise and improve transparency in the financial system.

According to the CBN, the new fee applies to standard ATM cards issued by all regulated institutions, including commercial banks, microfinance banks, payment service banks, and mobile money operators.

The regulator, however, clarified that no maintenance fee will be charged on naira-denominated debit or credit cards, while virtual cards will continue to be issued at no cost.

“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the CBN stated.

Under the revised framework, point-of-sale (POS) payments by customers will remain free, with the merchant bearing a service charge of 0.5 per cent per transaction, capped at ₦10,000.

The CBN also retained provisions allowing banks to charge for SMS transaction alerts strictly on a cost-recovery basis, while mandating that email alerts be provided free of charge.

For electronic transfers, transactions of ₦5,000 and below will remain free, while transfers between ₦5,000 and ₦50,000 will attract a ₦10 fee, and those above ₦50,000 will cost ₦50.

On ATM withdrawals, customers using another bank’s ATM will be charged ₦100 for every ₦20,000 withdrawn at on-site machines, while off-site ATMs may attract an additional surcharge of up to ₦500 per transaction, subject to disclosure.

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The CBN further stated that current account maintenance charges will be capped at 0.5 per mille in 2026, with a phased reduction to zero by 2027.

It added that account reactivation and certain routine services will remain free, while any new charges or services not listed in the guide must receive prior approval from the apex bank.

The revised guidelines replace the previous version issued in January 2020 and form part of broader reforms aimed at strengthening consumer protection and ensuring fairness in banking charges across the country.

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