The Transmission Company of Nigeria (TCN) has informed the House of Representatives Ad-hoc Committee investigating expenditure in Nigeria’s power sector that inadequate funding, right-of-way challenges and other factors have delayed the completion of more than 100 ongoing power projects across the country.
The Managing Director and Chief Executive Officer of TCN, Engr. Sule Ahmed Abdulaziz disclosed this at the resumed investigative hearing of the Committee in Abuja.
According to him, TCN receives no more than N2 billion as a budgetary allocation despite handling projects into which billions of naira have already been invested and which must be completed 100 per cent to become operational.
He explained that, unlike road construction, where completed portions can be used, power projects cannot function until they are fully completed.
Abdulaziz further informed the Committee that TCN is engaged in persistent disputes with state governments over right-of-way issues, as individuals often build structures under or along transmission corridors, obstructing the siting of electricity infrastructure.
He disclosed that state governments are currently demanding about N3 trillion from TCN as ground rent and compensation.
According to the TCN Managing Director, state governments are being influenced by consultants to use TCN projects as revenue sources, resulting in mounting pressure on the company to pay compensation and ground rents that have accumulated into trillions of naira.
He also revealed that electricity distribution companies owe TCN over N450 billion, adding that the non-payment, combined with government power subsidies, has significantly affected revenue generation.
Engr. Abdulaziz further informed the Committee that insecurity, vandalism, and acts of sabotage have continued to disrupt the execution of several power projects.
He said insurgents have destroyed electricity towers in areas affected by insecurity, while economic saboteurs frequently vandalise power infrastructure.
According to him, such incidents delay project execution and operations, as repairs often take months and require substantial funding, with no clear end in sight.
Speaking on the projects, he said: “This is where I started to mention our problems. I started telling the Chairman that our greatest problem is funding. Honourable Chairman, we have a lot of projects that started in 2001.
“After now, they are not completed. So for us, 2011 is just medium, but we have projects from 2001, which is 24 years old. And the problem is a lack of funding. So we thought that we could finish this project in December, but because there is no funding, we are not able to finish it.
“I have mentioned earlier that we have over 100 or 120 ongoing projects, and we will need something around 2 trillion naira to complete these projects.”
Following the presentation by the TCN Managing Director and other officials, the Chairman of the Committee, Ibrahim Al-Mustapha Aliyu, said the Committee would undertake physical assessments of selected power projects to enable informed recommendations to the House.
He said, “Of course, we will go with them to visit the generating companies and some of the DisCos projects. In January, we can decide; maybe we are to take them earlier, maybe before the commencement of the physical assessment as a technical session.
“We can also, maybe by way of easing engagement, appoint a technical committee. A committee of five with them so that we can engage them more effectively.
“The reason is that TCN plays a very critical role in the overall improvement of this sector, or otherwise. Without a reinforced transmission, without improving their capacity, no matter what energy you can produce, it cannot be conveyed.
“He has highlighted some very critical issues of concern that have to do with this committee pushing for an interrelationship between the federal government and the states.
“He has also said that electricity is now under the concurrent list, and I believe it is easier now to reach out to the states for collaboration and understanding so that issues impeding the continuous execution of projects relating to line extensions can be reduced.”