… attributes Federal Ministry of Finance’s failure to pay counterpart funding for delays in implementing donor-funded projects
… grapples with N600bn in liabilities in ground rent payments to state governments
Oredola Adeola
The Transmission Company of Nigeria (TCN) has energized 25 transformers in the first and second quarters of 2024, totaling transformer capacity installed at 2150 Mega Volt Amperes (MVA), according to Engr. (Dr) Sule Abdulaziz, the TCN’s Managing Director and CEO.
Abdulaziz made this disclosure during an oversight visit by the House of Representatives Committee on Power, led by Chairman Hon. Victor Nwokolo, who visited him to assess TCN’s activities, achievements, and challenges.
Advisors Reports’ review indicated that, as of December 2023, the TCN had an installed transformer capacity of approximately 26,500 MVA (Mega Volt Amperes) and a wheeling capacity of around 7,500 MW.
Engr Abdulaziz, in his presentation, noted that the TCN is battling with the inability of the federal ministry of finance to pay counterparts funding leading to delay in the implementation of the donor-funded projects since implementation is dependent on the release of the counterparts’ funds.
According to him, TCN grapples with a staggering N600 billion in liabilities in ground rent payments to state governments.
The TCN MD expressed frustration that the calculations for these payments, as outlined in letters from various states, are based on outdated values from the NEPA era – a period when TCN did not even exist as a company.
This has, according to him, resulted in unrealistic and burdensome financial obligations for the company.
Abdulaziz further noted that TCN has implemented effective Frequency Control and Load Balancing as this is evident in the drastic reduction in the instances of partial and full system collapses, ensuring a consistent and reliable power supply to consumers.
He emphasised that there is increased grid visibility as the in-house engineers made use of the Internet of Things (IoT) with the implementation of Automatic Meter Reading Infrastructure.
The TCN MD/CEO disclosed that TCN has commenced the implementation of the Supervisory Control and Data Acquisition (SCADA) systems to enable real-time monitoring and control of the power grid.
He said, “This technological advancement will significantly improve grid stability, reduce transmission losses, and allow for quicker response to faults and disturbances.
“There is overhaul digital transformation, using internal homegrown solutions and vendor-procured applications to enhance the efficiency and effectiveness of TCN wide operations,” Engr. Abdulaziz said.
TCN MD further stated that there is a designated web portal for managing the output of Generations and allocations to DisCos.
Speaking on the challenges facing TCN, Abdulaziz said that the company under his leadership inherited many uncompleted projects with no funds to complete them.
He also noted that TCN was spending a lot on payment of compensation for the acquisition of transmission lines Right of Way (RoW) for various projects across the country.
The MD appealed to lawmakers to enact legislation that would transfer ownership of all lands acquired for transmission substations to the company.
Hon. Victor Nwokolo, Chairman of the House Committee on Power, in his reaction to TCN’s concerns, acknowledged that funding has been a persistent challenge.
He highlighted the meager N2.5 billion allocated to TCN in last year’s federal budget, questioning how the company could be expected to make significant progress with such a limited amount.
Nwokolo noted that the cost of Right of Way (ROW) payments alone exceeds N2.5 billion, emphasizing the need for increased funding.
He urged the TCN management to engage with the budget office to secure improved funding allocations.
The Chairman also advised TCN Management to collaborate extensively with state governments to address ROW issues.
He recognized that lands remain under state control according to the Land Use Act and that effective engagement is crucial to resolving these challenges.
Also, he encouraged the company to further partner with vigilante groups to protect power facilities from vandalism.
Regarding the staggering ground rents, Chairman Nwokolo suggested that the House may address this issue through a motion.
