Despite N457bn Debts, TCN Expands transmission Capacity To 8,701MW
The Transmission Company of Nigeria (TCN) has announced an expansion of its wheeling capacity to 8,701 megawatts (MW), despite grappling with a mounting debt profile of N457bn.
This was disclosed during the TCN’s capacity-building workshop for journalists in Keffi, Nasarawa State.
The TCN’s Executive Director of Transmission Service Provider, Engr. Oluwagbenga Ajiboye, in his presentation, revealed that the debt burden, which includes N217bn in legacy debt and N240bb owed for more recent services, has not stopped the company from pushing forward with critical infrastructure upgrades.
He noted that discussions are ongoing with the Ministry of Finance Incorporated (MOFI) to recover part of the outstanding debts.
“The market owes us about N457bn as of March 2025, due to market shortfalls and legacy debts. We have traced N217bn to legacy obligations and are in discussions with MOFI for some recovery,” Ajiboye said.
Despite financial constraints, Ajiboye stated that TCN has steadily improved its operational capabilities.
“Our wheeling capacity has now reached 8,701MW. This expansion is a testament to our commitment to strengthening Nigeria’s power transmission backbone,” he said.
However, Ajiboye stressed that persistent weaknesses across the electricity value chain, particularly poor distribution uptake and sectoral inefficiencies continue to hinder the overall performance of the power sector.
He pointed out that over 40 transmission substations remain underutilised or shut down due to unresolved right-of-way issues or outright rejection of power loads by Distribution Companies (DisCos).
“There are completed substations that are not in use because the lines to evacuate power are yet to be completed. In some cases, DisCos simply refuse to accept the load,” he lamented.
However, the Federal Government’s plans to privatise five National Integrated Power Projects (NIPPs) have stalled due to what officials describe as low and uncompetitive bids from prospective investors.
The plants affected include Geregu II (434MW) in Kogi, Omotosho II (451MW) in Ondo, Olorunsogo II (750MW) in Ogun, Odukpani (563MW) in Cross River, and Benin-Ihovbor (451MW) in Edo.
Ajiboye explained that while the government remains committed to offloading the NIPP assets to raise funds and address fiscal gaps, current offers from investors fall significantly short of the value of the underlying investments.
“The government wants to sell, but the bids are not reflective of the investment cost. The power stations remain under government control for now,” he said.
Speaking on the broader challenges of the Nigerian Electricity Supply Industry (NESI), TCN’s Managing Director, Engr. Sule Abdulaziz, who was represented by Ajiboye, said the power sector remains a fragile value chain where the weakest link, whether in generation, transmission, or distribution, determines the output delivered to end-users.
“No matter how good TCN is, if GenCos are underperforming or if DisCos are not accepting loads, the system cannot function optimally. Each link must be strong for the sector to work efficiently,” Abdulaziz said.
On funding, the TCN General Manager of Project Coordination, Engr. Aminu Tahir said the company has secured financing from international partners, including the World Bank, African Development Bank, French Development Agency, and the Japan International Cooperation Agency. These funds are being used to bolster Nigeria’s transmission infrastructure.
He said challenges such as vandalism, right-of-way disputes, and poor demand uptake by DisCos remain key obstacles to delivering reliable power to consumers.
“While Nigeria has an installed generation capacity of over 12,000MW, actual delivery to end-users is often below 5,000MW due to systemic bottlenecks. These gaps must be addressed collectively,” Tahir noted.
Despite N457bn Debts, TCN Expands transmission Capacity To 8,701MW is first published on The Whistler Newspaper
