The Transmission Company of Nigeria (TCN) has called on the House of Representatives to pass legislation that would transfer ownership of lands acquired for transmission substations nationwide to the Federal Government. This request comes as TCN faces a massive N600 billion liability in ground rents owed to state governments.
Managing Director/Chief Executive Officer of TCN, Engr. Sule Ahmed Abdulaziz, made this call on Monday, 20th August 2024, during his presentation to the House Committee on Power, led by its Chairman, Hon. Victor Onyemaechi Nwokolo, during an oversight visit to the company.
Abdulaziz expressed concern that the ground rent calculations, as communicated by various state governments, are based on outdated values from the National Electric Power Authority (NEPA) era a period before TCN even existed as a company. This situation has created unrealistic and financially burdensome obligations for TCN.
Highlighting the company’s achievements, Abdulaziz noted that TCN successfully energized 25 transformers in the first and second quarters of 2024, adding a total capacity of 2150 MVA.
He also pointed out that TCN has implemented effective frequency control and load balancing measures, which have significantly reduced instances of partial and full system collapses, thereby improving the reliability of power supply to consumers.
“However, sustaining these efforts requires continued investment, capacity building, and collaborative partnerships. Federal Government support is crucial in bolstering TCN’s initiatives and providing the necessary resources to build a resilient and efficient transmission network. This will enable the company to meet the nation’s growing power demands and contribute to sustainable development. Together, we can achieve a brighter and energy-abundant future for the country,” he said.
Furthermore, Abdulaziz mentioned that TCN has temporarily deployed Internet of Things (IoT) and Automatic Meter Reading Infrastructure to enhance grid visibility and has begun implementing the Supervisory Control and Data Acquisition (SCADA) systems for real-time monitoring and control of the power grid.
“There is increased grid visibility as the in-house engineers made use of the Internet of Things (IoT) with the implementation of Automatic Meter Reading Infrastructure. There is an overall digital transformation, using internal homegrown solutions and vendor-procured applications to enhance the efficiency and effectiveness of TCN-wide operations,” he said.
Addressing the challenges faced by TCN, Abdulaziz revealed that the company inherited numerous uncompleted projects with insufficient funds to complete them. He attributed this to the Federal Ministry of Finance’s failure to pay counterpart funding, which has delayed the implementation of donor-funded projects.
Additionally, Abdulaziz expressed concern over the imposition of VAT and levy charges on offshore equipment for projects, as well as the high costs of compensating for the acquisition of transmission lines’ Right of Way (ROW) across the country. He called for the Committee’s support in resolving these pressing issues.
Abdulaziz also appealed to the Committee members to support efforts against vandalism, highlighting that several TCN towers have been vandalized since June, despite the company’s collaboration with security agencies to protect its transmission infrastructure.
On his part, the Chairman of the Committee, Hon. Victor Onyemaechi Nwokolo, acknowledged the persistent funding challenges faced by TCN. He questioned how the company could achieve significant progress with the previous year’s limited budget allocation of N2.5 billion, which is less than the cost of ROW payments alone.
Nwokolo advised TCN’s management to engage with the budget office to secure better funding allocations and suggested that the company work closely with state governments to resolve ROW issues, noting that land ownership remains under state control according to the Land Use Act.
On the issue of the massive ground rent liability, Hon. Nwokolo proposed that the House address the matter through a motion, suggesting that payments should only commence from the date substations are built, rather than being based on outdated calculations from before TCN’s establishment
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