jasdooit

The Managing Director of the Transmission Company of Nigeria (TCN), Engineer Sule Abdulaziz, stated on Tuesday that more than N2 trillion is needed to finish over 100 active power initiatives throughout the nation.

Engineer Abdulaziz mentioned this during the resumption of the inquiry hearing in Abuja, expressing concern over the N3 trillion being requested by state governments as land rent and compensation.

He claimed that state governments are being influenced by consultants to utilize TCN projects as a way to maximize income, leading to pressure on the company to cover compensations and land rents, which have added up to trillions of Naira.

He argued that insufficient financing, access rights, acts of destruction, and additional issues have caused delays in finishing more than 100 active power projects being carried out throughout the nation.

Although acknowledging that TCN is not receiving more than N2 billion in funding despite having projects where billions have been invested, he emphasized that unlike in road construction, where the completed portion can be used, power projects cannot operate or be utilized until they are fully completed.

Engineer Abdulaziz added that the Company is also facing ongoing challenges in the United States due to the right-of-way issues, as individuals construct buildings beneath or near transmission lines, hindering the placement of electrical infrastructure.

He stated that in numerous cases, compensations exceed project expenses, noting that the DisCos currently owe TCN over N450 billion, which they have not settled, while government subsidies continue to impact revenue collection.

He also mentioned that instability, destruction, and other acts of sabotage have impacted the implementation of numerous TCN’s power projects.

He stated that insurgents have destroyed power towers in numerous areas characterized by widespread instability, while economic saboteurs damage electrical infrastructure.

He stated that these actions are hindering the implementation of operations and projects, as some require several months to fix at a significant cost, and it appears there is no conclusion in sight.

He stated, “This is where I began to discuss our issues. I started by informing the Chairman that our biggest challenge is financial support. Esteemed Chairman, we have numerous projects that commenced in 2001.”

From now on, they are not yet finished. Therefore, for us, this 2011 is merely average, but we have initiatives from 2001, which spans 24 years. The issue lies in the shortage of funds. Hence, we had planned to complete this project by December, but due to the lack of funding, we are unable to finish it.

I previously stated that we have more than 100 or 120 active projects, and we will require approximately 2 trillion Naira to finish them.

In his response, Hon. Aliyu, who chaired the meeting, revealed that the Ad-hoc Committee will conduct an evaluation of certain power projects to gain firsthand insights, enabling them to provide well-informed suggestions to the House regarding all essential actions needed to stabilize the country’s energy sector.

Of course, we will accompany them to visit the power generation companies and certain discussion initiatives. In January, we can make a decision; perhaps if we take them earlier, maybe before the start of the physical evaluation as a technical session. We could also, in order to facilitate involvement, establish a technical committee.

A group of five individuals to enable more effective engagement with them. The rationale is that TCN holds a crucial position in the overall development of this sector or otherwise. Without a strengthened transmission system, and without enhancing their capabilities, no matter how much energy you generate, it cannot be transported.

“He has pointed out several important matters that relate to this committee’s efforts to establish a connection between the government and the states. He has also mentioned that electricity is now part of the concurrent list, and I think it is now simpler to engage with the states for cooperation and mutual understanding, thereby minimizing obstacles that hinder the ongoing implementation of projects related to line extensions,” he remarked.