The Transmission Company of Nigeria (TCN) has said that it is owed N457 billion as of March for services rendered within the Nigerian Electricity Supply Industry (NESI).
The Managing Director of TCN, Mr Sule Abdulaziz, made this known on Wednesday at the opening of a capacity-building workshop for journalists in Keffi, Nasarawa State, News Agency of Nigeria reports.
Abdulaziz was represented by Mr Oluwagbenga Ajiboye, Executive Director, Transmission Service Provider, TCN.
The Workshop, with the theme, “Understanding the Critical Role of TCN in Nigeria Electricity Supply Industry (NESI),” was organised to deepen the knowledge of the journalists covering the power sector.
According to the TCN boss, the outstanding debt includes N217 billion in legacy debt and N240 billion for recent services rendered.
He noted that in spite of the financial constraints, the company had made significant strides in improving its operational capacity, with its wheeling capacity now increased to 8,701 megawatts.
However, Abdulaziz pointed out that the sector continued to face critical challenges such as vandalism and funding shortfalls, which undermined efforts to optimise performance, in spite of substantial investments in transmission infrastructure.
Electricity value chain must not be broken – TCN
He also stressed the need for greater investment in the distribution segment of the power value chain, warning that any weak link in the chain could compromise power delivery to end-users.
“The electricity value chain must not be broken. Its strength must be uniform to successfully deliver electricity to consumers,” he said.
Also speaking at the event, Mr Aminu Tahir, General Manager, Project Coordination, highlighted the issue of unutilised substations.
Tahir said that several newly completed substations remained idle due to the inability to connect them to transmission lines.
He attributed the delay to persistent right-of-way challenges, which had hampered progress on key projects.
He noted that TCN had secured funding from various international partners.
Tahir listed the partners to include the World Bank, French Development Agency (AFD), African Development Bank, and the Japan International Cooperation Agency (JICA) to support its infrastructure expansion initiatives.
In her remarks, TCN General Manager, Public Affairs, Mrs Ndidi Mbah, said the workshop was organised to bridge the information gap between the company and the media.
“It is very important to us at TCN for you to understand us well and report us better.
“This workshop provides an opportunity for journalists to engage with TCN experts and get firsthand information on the company’s activities,” she said.
What you should know
The power sector is facing a severe liquidity crisis, largely due to significant debts owed operators, including generation companies (GenCos).
The Federal Government is currently indebted to GenCos to the tune of over N4 trillion.
In April, the government announced plans to begin settling this debt, which stems from electricity already generated and supplied to the national grid.
In May, the management of the Niger Delta Power Holding Company (NDPHC) Limited also raised concerns over a N600 billion debt owed by the Nigerian Bulk Electricity Trading (NBET) Plc, saying it is severely hindering the company’s operations.
