Lack of Funding, Others Delaying Over 100 Power Projects, TCN Tells House Panel

Juliet Akoje in Abuja

Transmission Company of Nigeria (TCN) has disclosed to the House of Representatives Ad-hoc Committee probing spending in the power sector that insufficient funding, right-of-way challenges, vandalism, insecurity, and other constraints have slowed or stalled the completion of more than 100 power transmission projects across the country.

The disclosure was made by TCN’s Managing Director and Chief Executive Officer, Engr. Sule Abdulaziz, during the committee’s resumed investigative hearing yesterday.

Abdulaziz told lawmakers that despite having multiple capital-intensive projects requiring billions of naira to reach full completion, TCN’s annual budgetary allocation did not exceed N2 billion, a situation he said made timely project delivery impossible.

He explained that, unlike road projects, where completed sections could be put to use even when construction was ongoing, power transmission projects could not operate or deliver value unless they were completed 100 per cent.

The TCN boss further revealed that the company was locked in persistent disputes with several state governments over right-of-way issues. He stated that individuals frequently erected buildings directly under or along transmission line corridors, obstructing the siting and installation of electricity infrastructure.

He added that state governments were currently demanding about N3 trillion from TCN in ground rents and compensation payments.

According to him, many states are being influenced by consultants to view TCN projects as revenue-generating opportunities, leading to intense pressure on the company to pay compensations and ground rents that have accumulated into trillions of naira.

Abdulaziz also told the committee that, in several cases, compensation claims exceeded the actual cost of the projects themselves.

He disclosed that electricity Distribution Companies (DisCos) currently owed TCN more than N450 billion, debts he said remained largely unpaid, while government power subsidies continued to affect the company’s revenue flow.

He informed the lawmakers that insecurity, vandalism and deliberate acts of sabotage had undermined project execution across the country.

According to him, insurgents have repeatedly brought down electricity transmission towers in areas plagued by insecurity, while economic saboteurs vandalise critical power infrastructure elsewhere.

He said such attacks significantly delayed operations and project completion, as damaged infrastructure often took months to repair at enormous cost, with little indication that the attacks would stop.

While addressing the committee on the age and status of ongoing projects, Abdulaziz stated that funding remained TCN’s most critical challenge, stressing that several projects currently under execution are initiated as far back as 2001.

He explained that many of those projects, now over two decades old, remained unfinished because of inadequate funding, adding that plans to complete some by December cannot be realised due to lack of financial support.

He further disclosed that TCN was currently handling between 100 and 120 ongoing projects nationwide and would require approximately N2 trillion to complete them.

Following the presentation by the TCN management and other officials, the chairman of the ad-hoc committee, Hon. Ibrahim Al-Mustapha Aliyu, said the panel would conduct on-the-spot assessments of selected power projects to independently verify their status and enable the House to make informed recommendations aimed at stabilising the power sector.

Aliyu stated that the committee would also visit generating companies and some distribution company projects, adding that such engagements could begin as early as January, possibly even before commencement of full physical assessments.

He proposed the formation of a five-member technical committee to enhance engagement with TCN officials, stressing that the transmission company occupies a pivotal position in the power value chain.

According to him, without a strengthened and expanded transmission network, increased power generation alone would be meaningless, as electricity cannot be effectively delivered to consumers.

He stated that the issues raised by TCN highlighted the need for stronger collaboration between the federal and state governments, particularly now that electricity had been placed on the concurrent legislative list, making it easier to foster cooperation with states to resolve obstacles hindering transmission line expansion and project execution.