TCN unbundling not mere administrative step – Minister

The Minister of Power, Chief Adebayo Adelabu, has confirmed the unbundling of the Transmission Company of Nigeria into two distinct operational entities, which are the Nigeria Independent System and the Transmission Service Provider.

He stated that the unbundling, which is in accordance with the Electricity Act 2023, is not simply an administrative measure but a testament to the ministry’s dedication to promoting operational clarity.

Adelabu disclosed this at the first edition of the Corporate Governance Forum in Nigeria, held on Monday in Abuja.

A statement by his media aide, Bolaji Tunji, said the devolution is one of the most significant structural reforms in recent times in the power sector.

He stressed that operational clarity improves transparency and, ultimately, value creation through better corporate governance.

These necessities, the minister stated, led to the unbundling of the TCN into NISO and the 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 used the commission as an example to stress the importance of immediate structural reforms, especially within Nigeria’s public enterprises, to enhance their efficiency and productivity in response to the evolving complexities of the nation’s economy.

He also called for good governance, which he said is central to national development that will ensure that public resources are safeguarded and deployed to serve the needs of the country.

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.

Speaking further, Adelabu commended the MOFI for leading the repositioning of the Federal Government’s asset management function and in embedding governance as a strategic priority for all Federal Government-owned enterprises.

He said the launch of the Corporate Governance Scorecard and the pilot assessment are important steps in building a culture of performance and transparency across the public enterprise landscape.

He added, “The Federal Ministry of Power stands ready to align with these efforts and institutionalise sound governance practices across all entities within our purview. We will continue to work with the relevant authorities to ensure that the governance frameworks of the Nigerian Independent System Operator and the Transmission Service Provider and other power sector entities are clear, functional, and fit for purpose.

“In closing, let me reaffirm that for us in the Nigerian Power Sector, good corporate governance is not a luxury; it is a necessity for national competitiveness, financial sustainability, and inclusive service delivery. We expect that this forum will serve as a catalyst not just for dialogue but for action.”

The statement added that the event was attended by important personalities, including the Minister for Finance and the Coordinating Minister for the Economy, Mr Wale Edun, and the Chairman/CEO of the MOFI Corporate Governance Forum, Dr Shamusudeen Usman.