The Transmission Company of Nigeria (TCN),has said 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 Managing Director and Chief Executive Officer of TCN, Engr. Sule Ahmed Abdulaziz, disclosed this during the continuation of the hearing of the House of Representatives Ad-hoc Committee probing expenditure in the power sector.
He lamented that the company’s annual budgetary allocation, which he said, merely exceeds ₦2 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 told the 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 ₦3 trillion from TCN in ground rents and compensation claims.
He also 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.
He revealed that electricity distribution companies (DisCos) are indebted to TCN to the tune of over ₦450 billion, a situation compounded by government power subsidies, which he said has 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 vandalise 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.
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 ₦2 trillion to bring them all to completion.
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 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 emphasized 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.
