Nigerian Government to restructure TCN
The Nigerian Government has announced plans to restructure the Transmission Company of Nigeria (TCN) in accordance with the Electricity Act 2023 and industry demands.
Minister of Power, Mr Adebayo Adelabu, stated this in Abuja on Tuesday at the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Plan with the theme, “Navigating and Aligning on the Path to Enhanced Electricity Reliability’’.
“To align with the Electricity Act 2023 and the industry’s demands, it’s time to restructure the Transmission Company of Nigeria (TCN) into two entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP),” Mr Adelabu said.
He said this restructuring must synchronise with the evolving landscape of state electricity markets, addressing calls for the decentralisation of the national grid into regional grids interconnected by a new higher voltage national or super-grid.
“Essentially, we must ask whether the government should directly provide electricity nationwide or rather facilitate its provision.
“Drawing comparisons with China’s centralized model and the US’s diverse access models like rural cooperatives and state-based utilities with regulatory oversight presents various considerations.
“How to handle subsidies, cross-subsidies, and aligning the Rural Electrification Agency’s role with emerging State markets are vital questions that demand stakeholder scrutiny for effective resolution,” he said.
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Adelabu said for the country to increase its gross domestic product (GDP) to $1 trillion by 2030 as projected by President Bola Tinubu, it must massively increase investments in electricity.
He also said FG must work with state and local governments to increase the coverage and distribution of electricity across the country.
The TCN, which coordinates the nation’s electricity transmission network, is one of 18 companies that were unbundled from the defunct Power Holding Company of Nigeria (PHCN) in April 2004. It was incorporated in November 2005 and issued a transmission licence a year later.
TCN’s licensed activities include electricity transmission, system operation and electricity trading. The company is currently fully owned and operated by the government.
