The Transmission Company of Nigeria (TCN) needs funding to expand the power sector’s transmission infrastructure, according to the Power Minister.
Adelabu made the call over the weekend while speaking at a Senate Committee on Power two-day retreat.
The minister argued that the TCN should receive funding under the appropriation bill, not to mention that the organization’s resources are insufficient to support its operations.
They lack the necessary funds, and they only run their internally generated revenue (IGR), which has declined over time. They are unable to pay their monthly salaries, nor are they able to maintain their outdated infrastructure and build new transmission networks. He claimed that TCN should be able to be accommodated in appropriation.
Adelabu addressed the ongoing crisis that is threatening to derail industry progress, which, in his opinion, continues to trajectorise service delivery across the country despite significant reforms in the electricity sector.
The Minister pointed out glaring differences in the performance of distribution companies (DisCo), which include aging networks, widespread electricity theft, and subpar investments that have increased reliance on unsustainable subsidies and left millions in darkness.
“We need to be tough with the DisCos because they can easily thwart our gains.” In terms of performance expectations, they have disappointed us. If consumers are frustrated at the distribution points, whatever we do in generation doesn’t mean anything.
He noted that while the sector was being restructured in 2003, the DisCos were supposed to have technical partners, but many of them showed that they had worked with foreign companies to achieve that goal, which lasted for about three months.
However, he claims that those businesses left right away as soon as they took control.
“We need utility companies that can invest in the sector to improve infrastructure, and likewise, improve service,” he said, adding that “many of them went to the banks to take loans to buy the assets, and after that, they are taking out the money to pay the loans,”
The distribution segment continues to be the weakest link, according to the Minister, despite tariff adjustments that increased market liquidity by 70%, increasing sector revenue from 1 trillion in 2023 to 1 trillion in 2024.
“Abuja DisCo accounted for 85% of Northern payments in the fourth quarter of 2024, with only 124.4% (30%) of their 240.86 billion invoice being sent to DisCos in the North.” Southern DisCos did a little better, sending in a whopping 254.6 billion (67%), despite having to pay only Lagos DisCos for 70% of it. These discrepancies are primarily the result of underinvestment and network degradation outside of economic hubs.
Adelabu noted that the government’s $ 700 billion Presidential Metering Initiative (PMI) and a World Bank-backed program aimed at 4.3 million meters by 2025, and that an additional 200, 000 units are anticipated in May. This is a key driver of revenue loss and consumer distrust.
The Minister acknowledged that closing this gap is essential to fair billing and financial sustainability, but that underinvestment and operational inefficiencies are holding us back.
Additionally, generation companies are owed a 4 trillion dollar subsidy backlog, including 1.9 trillion for 2024 alone. The Minister warned that continuing to pay current tariffs is “unsustainable,” putting strain on public funds needed for infrastructure upgrades, as monthly shortfalls now exceed $200 billion.
We will soon begin restructuring underperforming DisCos and putting stricter performance benchmark enforcement in place to save the sector. However, without urgent funding for distribution networks, gains in generation, including a historic 6,003MW output in March 2025, and transmission upgrades, such as the deployment of 61 new transformers in 2024, won’t be able to provide reliable household supply.
The Minister praised plans to regionalize transmission networks and encourage private investment in grid infrastructure, noting that the two DisCos in Lagos’ 70% remittance reflects better infrastructure than that of the northern networks.
The Minister also mentioned plans to improve the country’s northern region’s power supply. The approximately 1000 megawatt Makurdi hydropower project is being investigated. Additionally, we want to revive the abandoned Kaduna thermal plants, which have been closed down for five years. It has a 215 megawatt power plant that is currently about 87% complete. This power plant is currently being restored in an effort to.
Adelabu reported that the state government is interested in acquiring the 10-MW installed Katsina wind farm. The State government has requested that some private investors be involved in this matter, and we have ordered a feasibility study to be conducted to consign the farm, which has been a while.
He demanded that more stringent laws be passed to protect Nigeria’s power infrastructure from vandalism.
Adelabu emphasized the necessity of stronger legal controls in order to stop the destruction of crucial energy assets and maintain the stability of the nation’s electricity supply.
The Minister believes that vandalism should not be a civil offense but rather a criminal one, adding that illegal connections, power theft, and nonpayment of bills by customers are all serious issues that need to be addressed.
Read more about how other world leaders pledge more than $170 million to the WHO ahead of the US exit.
Adelabu acknowledged that despite the difficulties, the grid has been stabilized and that there hasn’t been a grid collapse since the start of the year.
“Our current grid’s stability is the result of our hard work and expenditure,” he said. TCN installed 61 new transformers in 2024, either by replacing them with brand-new ones or creating new ones. Additionally, TCN installed about 13 new transformers in its first four months, with capacities ranging from 10 megawatts to 300 megawatts. These are what our people still go out to vandalise, all put together, cost hundreds of millions of dollars to install.
Our towers have been toppled by saboteurs and vandals, and there are meters that people tamper with. The Minister urged appropriate legislation and public vigilance to safeguard “national assets,” which are owned by every Nigerian.
Source: Channels TV
Leave a Reply