The Transmission Company of Nigeria (TCN) has disclosed to the House of Representatives Ad-hoc Committee probing expenditure in the power sector that persistent funding constraints, right-of-way challenges, vandalism, and insecurity have stalled the completion of more than 100 ongoing transmission projects across the country.
The disclosure was made on Tuesday by the Managing Director and Chief Executive Officer of TCN, Engr. Sule Ahmed Abdulaziz, during the continuation of the Committee’s investigative hearing.
Engr. Abdulaziz lamented that the company’s annual budgetary allocation, which he said barely exceeds N2 billion, is grossly inadequate considering the scale of its responsibilities and the huge investments already committed to several projects that must be completed fully before they can become operational.
He explained that, unlike road projects, where completed sections can be put to use, power transmission infrastructure remains non-functional until projects are executed to 100 per cent completion.
The TCN boss further informed lawmakers that the company is embroiled in recurring disputes with several state governments over right-of-way issues, noting that buildings and other structures are often erected along transmission corridors, thereby obstructing the installation of electricity infrastructure.
According to him, state governments are currently demanding about N3 trillion from TCN in ground rents and compensation claims.
He alleged that consultants engaged by some states have encouraged the use of TCN projects as revenue-generating avenues, resulting in compensation demands that, in some cases, exceed the actual cost of the projects.
Engr. Abdulaziz also revealed that electricity distribution companies (DisCos) are indebted to TCN to the tune of over N450 billion, a situation compounded by government power subsidies, which he said have further weakened the company’s revenue base.
He added that insecurity, vandalism, and sabotage have continued to undermine project execution, citing instances where insurgents have destroyed transmission towers in volatile areas, while economic saboteurs vandalize critical electricity infrastructure.
“These incidents often set us back significantly because repairs can take several months and require substantial financial resources, yet there seems to be no end in sight,” he said.
While highlighting the age and scale of the projects, the TCN MD noted that some of the ongoing transmission projects date back as far as 2001.
“Our greatest challenge is funding. We have projects that started in 2001 and are yet to be completed after over two decades.
“We initially planned to conclude some of them by December, but lack of funds has made that impossible,” he stated.
He added that TCN currently has between 100 and 120 ongoing projects nationwide and would require about N2 trillion to bring them all to completion.
Following the presentation, the Chairman of the Ad-hoc Committee, Hon. Ibrahim Al-Mustapha Aliyu, said lawmakers would embark on physical assessments of selected power projects to gain a firsthand understanding before making recommendations to the House.
He disclosed that the Committee plans to visit generation companies as well as some distribution projects and may also constitute a small technical committee to deepen engagement with TCN officials.
Hon. Aliyu stressed that transmission remains central to the stability of the power sector, noting that no matter the volume of electricity generated, it would be ineffective without a strengthened transmission network.
He also pointed out that with electricity now on the concurrent legislative list, there is a greater opportunity for collaboration between the federal and state governments to resolve challenges, particularly those affecting right-of-way and the extension of transmission lines across the country.
(Independent)
