The Japanese government has unveiled plans to invest in the country’s electricity sector. Acting Managing Director of the Transmission Company of Nigeria (TCN) Usman Mohammed disclosed this in an interview. The investments will involve rehabilitation and construction of transmission facilities in Lagos State.
“We are working in collaboration with some other multilateral donors, such as the Japanese government to build some of the substations. For example, Apapa has been taken over by the Japanese government. They are looking at Ojo and Isolo. Those two places will be rehabilitated by the Japanese Government.
How both countries will benefit
Even though the assistance is classified as a donation, the Japanese government benefits from the move in several ways. The equipment and labour to be provided, will most likely involve Japanese companies. Going forward, maintenance of these facilities will be by these same companies.
Nigeria also benefits as increased transmission capacity means more electricity can be supplied to customers. Lagos is the commercial nerve centre of the country, so increased electricity supply means enhanced productivity as well as more efficiency due to a drop in spending on alternative sources of power. Data from the Manufacturers Association of Nigeria (MAN) show manufacturers in the country spent between N129 billion on alternative power in 2016.
The Transmission Company of Nigeria (TCN) was incorporated in November 2005, after the merger of Transmission and Operation components of the defunct Nigerian Electricity Power Authority (NEPA) in 2004. TCN is concerned with electricity transmission, system operation and electricity trading.