The Transmission Company of Nigeria (TCN) is grappling with a significant financial burden, with a staggering N457 billion owed to it by various stakeholders within the Nigerian Electricity Supply Industry (NESI) as of March 2025. This substantial debt, comprising N217 billion in legacy debt and N240 billion for services recently rendered, is severely impeding TCN's ability to perform optimally and invest sufficiently in critical infrastructure. The broader Nigerian electricity sector faces an even deeper debt crisis, estimated at N4 trillion, which includes unpaid subsidy backlogs from the federal government, further threatening its stability and performance.

Engr. Oluwagbenga Ajiboye, TCN’s Executive Director of Transmission System Provider (TSP), highlighted that this heavy debt is profoundly affecting the transmission subsector. While TCN has secured funding from various international development partners, including the World Bank, French Development Agency (AFD), African Development Bank (AfDB), and Japan International Cooperation Agency (JICA), these financial constraints persist. The company has initiated discussions with the Ministry of Finance Incorporated (MOFI) to recover the legacy debts, aiming to free up funds for essential transmission projects and expansion.

Beyond financial challenges, TCN faces severe operational hurdles. Persistent Right of Way (RoW) issues are a major impediment, delaying the connection of newly completed substations to transmission lines and stalling progress on critical infrastructure projects. When projects are abandoned due to ongoing litigation over RoW, they often become targets for vandalism, leading to significant financial losses. Engr. Ajiboye revealed that vandalism alone cost TCN approximately N9 billion last year, which continues to hinder grid expansion and overall system reliability. Ageing infrastructure across the distribution and generation sub-sectors also contributes to unavailable capacity.

Other critical issues include the federal government’s stalled efforts to privatize its five National Integrated Power Projects (NIPPs). The government has been unable to sell plants like the Geregu II, Omotosho II, Olorunshogo II, Odukpani, and Benin-Ihovbor power plants, citing insufficient bids that do not cover the investment outlay. Despite these challenges, TCN has made notable operational improvements, including increasing its wheeling capacity to 8,701 megawatts. However, the managing director of TCN, Engr. Sule Abdulaziz, stressed the imperative for greater investment across the entire power value chain, particularly in the distribution segment, warning that any weak link compromises power delivery to end-users. He emphasized, “The electricity value chain must not be broken. Its strength must be uniform to successfully deliver electricity to consumers.”

In efforts to enhance transparency and foster better understanding of its operations, TCN recently organized a capacity-building workshop for power sector journalists in Keffi, Nasarawa State. This initiative, themed ‘Understanding the Critical Role of TCN in Nigeria Electricity Supply Industry (NESI)’, aimed to bridge information gaps and allow journalists to engage directly with TCN experts. Furthermore, TCN has inaugurated its Performance Improvement Plan/Power Sector Recovery Operation (PIP/PSRO) Committee on June 17, 2025. This committee, mandated by the Nigerian Electricity Regulatory Commission (NERC), is designed to enhance operational efficiency, ensure financial sustainability, identify and mitigate bottlenecks, improve transmission reliability, and reduce system losses through upgraded maintenance practices and operational protocols. The committee is tasked with setting clear targets, performance indicators, and ensuring accountability among stakeholders to achieve a reliable and well-managed transmission system that attracts both local and foreign investments.