The Minister of Power, Chief Adebayo Adelabu, has announced the unbundling of the Transmission Company of Nigeria into two separate entities: the Nigeria Independent System Operator and the Transmission Service Provider.
Adelabu made this disclosure at the first edition of the Corporate Governance Forum in Nigeria, held on Monday in Abuja.
He emphasized that the move, in line with the Electricity Act 2023, goes beyond a routine administrative change. It reflects the ministry’s strong commitment to enhancing transparency, efficiency, and clarity in the operation of Nigeria’s power transmission system.
A statement from his media aide, Bolaji Tunji, described the devolution as one of the most significant structural reforms in the power sector in recent years.
He highlighted that operational clarity fosters transparency, ultimately leading to value creation through stronger corporate governance.
The minister further stated that these critical factors were the driving force behind the decision to unbundle TCN into the NISO and TSP.
He said, “One of the most significant structural reforms in recent times in the power sector is the unbundling of the Transmission Company of Nigeria into two distinct operational entities, which are the Nigeria Independent System and the Transmission Service Provider, in accordance with the Electricity Act 2023.
“This is not a mere administrative step but a reflection of the Ministry’s commitment to fostering operational clarity, transparency, and ultimately, value creation through better corporate governance.”
The minister cited the commission as an example to emphasize the need for urgent structural reforms, particularly within Nigeria’s public enterprises, to improve their efficiency and productivity in light of the country’s evolving economic challenges.
He also advocated for good governance, noting that it is crucial to national development, ensuring that public resources are protected and utilized effectively to meet the country’s needs.
He said, “It is a great honour to address you today at this landmark Corporate Governance Forum – the very first of its kind in Nigeria, convened under the leadership of the Ministry of Finance Incorporated and in collaboration with the World Bank and other esteemed development partners.
“This Forum comes at a critical juncture. Across Nigeria, state-owned enterprises have long held a central role in driving public service, value creation, and supporting economic development. Yet, the evolving complexities of our economy, technological disruptions, and rising public expectations have laid bare the urgent need for transformation, particularly in how we govern these enterprises. For us in the power sector, this imperative is neither abstract nor optional. It is urgent, necessary and already underway,” the minister said.
He noted that improved corporate governance is not only about internal efficiency but also central to national development, as it will ensure that public resources are not only safeguarded but are deployed effectively to serve the broader goals of reliability, access, and energy transition.
“Both the Nigerian Independent System and the Transmission Service Provider have critical mandates. The NISO will oversee the real-time balancing of electricity supply and demand, while the TSP will be responsible for maintaining and expanding the physical transmission infrastructure.
“To deliver on these mandates effectively, each entity must be governed with integrity, independence, and accountability. Good corporate governance will not only ensure their operational excellence but also bolster investor confidence, facilitate regulatory compliance, and protect public interest, “he said.
