TCN raises alarm over N457bn debt, warns power sector at risk

The Transmission Company of Nigeria (TCN) has disclosed that it is owed a staggering N457 billion for services rendered within the Nigerian Electricity Supply Industry (NESI) as of March 2025, raising fresh concerns over the deepening liquidity crisis threatening the country’s power sector.

The revelation was made on Wednesday at a capacity-building workshop for energy journalists held in Keffi, Nasarawa State. TCN’s Managing Director, Mr. Sule Abdulaziz, was represented by Mr. Oluwagbenga Ajiboye, Executive Director of the Transmission Service Provider arm of the company.

The workshop, themed “Understanding the Critical Role of TCN in Nigeria’s Electricity Supply Industry (NESI),” aimed to enhance media understanding of TCN’s operations and challenges within the power sector.

Despite this significant financial burden, TCN said it had managed to grow its wheeling capacity—the ability to transmit electricity from generation to distribution companies—to 8,701 megawatts (MW), a milestone it considers critical to improving grid reliability.

However, Abdulaziz warned that persistent issues like vandalism, poor funding, and weak coordination across the power value chain continue to threaten progress.

“The electricity value chain must not be broken. Its strength must be uniform to successfully deliver electricity to consumers,” he said.

He emphasized that unless equal investment is made across the generation, transmission, and distribution segments, the system would continue to underperform, regardless of how much is spent on any one component.

Also speaking at the event, Mr. Aminu Tahir, General Manager of Project Coordination at TCN, lamented that several completed substations remain idle due to the inability to connect them to the grid—largely because of right-of-way disputes delaying the construction of critical transmission lines.

READ ALSO: TCN announces planned power outage in Ibadan for transformer integration

“It’s frustrating to have brand-new substations that are ready but cannot be energized because we cannot complete the associated lines,” he said.

Tahir disclosed that despite these bottlenecks, TCN had secured funding from several international partners, including:

In her remarks, TCN’s General Manager of Public Affairs, Mrs. Ndidi Mbah, said the workshop was part of a broader effort to bridge the information gap between the company and the public through more accurate media reporting.

“It is very important to us at TCN for you to understand us well and report us better. This workshop provides an opportunity for journalists to engage with TCN experts and get firsthand information on the company’s activities,” she said.

The TCN’s debt woes are part of a larger crisis affecting the Nigerian power industry, especially amid growing concerns over unpaid debts across the electricity value chain.

The Federal Government currently owes generation companies (GenCos) over N4 trillion for electricity already supplied to the national grid. In April, authorities announced plans to begin clearing the backlog of payments.

In a related development, the Niger Delta Power Holding Company (NDPHC) revealed in May that it is being owed N600 billion by the Nigerian Bulk Electricity Trading (NBET) Plc, a situation that has severely hampered its ability to operate and maintain its generation assets.

Industry analysts warn that unless the Federal Government urgently addresses the sector’s liquidity challenges and ensures synchronized investment across generation, transmission, and distribution, the nation’s energy crisis will deepen—despite infrastructure upgrades and international funding support.