The Transmission Company of Nigeria (TCN) says that it is ready to explore Public-Private Partnerships (PPP) in addressing decades of infrastructure decay in the Nigerian power transmission network.
The Executive Director, Transmission Service Provider at TCN, Mr. Oluwagbenga Ajiboye, told journalists in Abuja that ageing equipment, some dating back over four decades, has significantly eroded the capacity of the national grid, creating an urgent need for capital injection and private-sector participation.
“Some of our transmission machines were installed 40 or 45 years ago. If a transformer was rated 150 megawatts back then, there’s no way it can still deliver that capacity today, no matter how much you refurbish it,” he explained.
Drawing parallels with human ageing, he added, “Even as a human being, there are things you could do at 18 that you can’t do anymore. The same applies to our infrastructure.”
Ajiboye said that TCN was already in discussions to open up the transmission segment to willing investors, especially in areas where public funding has proven inadequate to meet growing demand.
“We are ready to throw it open for a Public-Private Partnership. We are already discussing where we cannot meet the demand of the people. If you have the money and you’re willing to invest, the door is open,” he said.
He warned that transmission investments require a long-term approach, stressing that expecting quick returns would be a mistake.
“Transmission investment is not a sprint; it is a marathon. That was the mistake we made using short-term bank loans to fund long-term power infrastructure. The return on investment in this sector is spread over 20 to 25 years,” he explained.
He lamented the systemic delays in project execution due to Nigeria’s bureaucratic procurement cycle, noting that it takes a minimum of 24 months to complete a power project, excluding the 15 months average it takes to procure equipment, sometimes extended by another nine months under government processes.
According to him, the entire electricity value chain, generation, transmission, and distribution, suffers from outdated and derated equipment, but the real difference lies in the willingness of each player to invest in upgrades.
“Generation has problems. The transmission has problems. Distribution has problems. But the difference is the willingness to improve. That’s what sets us apart,” he added.
The TCN boss said the agency is prioritising investment in critical infrastructure and appealed for more private sector collaboration to improve transmission reliability nationwide.
GIK/APA