Funding Gaps, Right of Way Disputes Stall Over 100 Power Projects — TCN
The Transmission Company of Nigeria (TCN) has told the House of Representatives Ad-hoc Committee probing expenditure in the power sector that inadequate funding and other operational challenges have delayed the completion of more than 100 transmission projects nationwide.
At a resumed investigative hearing on Tuesday, TCN’s Managing Director/Chief Executive Officer, Engr. Sule Ahmed Abdulaziz, said the company requires over ₦2 trillion to complete ongoing projects, some of which date back to 2001.
According to Abdulaziz, TCN’s annual budgetary allocation is grossly insufficient, noting that the company often receives less than ₦2 billion despite executing capital intensive projects that can only become operational upon full completion.
He also cited right-of-way challenges, vandalism, insecurity and mounting compensation claims by state governments as major obstacles.
Abdulaziz disclosed that states are demanding about ₦3 trillion in ground rents and compensation, alleging that consultants encourage aggressive billing that sometimes exceeds project costs.
The TCN boss further revealed that electricity distribution companies (DisCos) owe the firm over ₦450 billion, while government power subsidies continue to strain revenue inflows.
He added that insurgency and vandalism have led to the destruction of transmission towers in several locations, causing prolonged outages and costly repairs.
Chairman of the Committee, Hon. Ibrahim Al-Mustapha Aliyu said lawmakers would undertake physical inspections of selected power projects and consider setting up a technical committee to engage stakeholders more effectively.
Aliyu stressed that strengthening transmission infrastructure is critical to stabilising Nigeria’s power supply, noting that electricity generation is futile without the capacity to transmit it.
He also called for stronger collaboration between the federal and state governments, especially as electricity now falls under the concurrent legislative list.
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