TCN secures $1.4bn funding, lifts transmission capacity to 8,700MW

The Transmission Company of Nigeria (TCN) has secured more than $1.4 billion, about N1.87 trillion, in loans and grants to expand the national electricity grid. The funding has raised transmission wheeling capacity to 8,700 megawatts and supported the commissioning of 89 power transformers.

Funding from development partners

TCN Executive Director for Transmission Service Provider, Ajiboye Oluwagbenga, disclosed this at a training workshop in Keffi, Nasarawa State, on Thursday. He said the financing was mobilised within the last 12 months through partnerships with major international development institutions.

These include the World Bank, African Development Bank, Japan International Cooperation Agency and Agence Française de Développement. Oluwagbenga said the investments have strengthened the national transmission network, allowing it to carry significantly more electricity.

Capacity figure based on simulation

Oluwagbenga said TCN’s transmission wheeling capacity currently stands at about 8,700MW, but this has not been physically tested. He explained that the figure was based on simulations and that TCN intentionally adopted a conservative approach when measuring the network’s capacity.

“These things don’t come cheap at all. The investment made so far, accumulated in the last 12 months, that we have secured is in excess of $1.4bn from multilateral and development financing mobilised for TCN expansion,” he said.

“When we are talking about the transmission wheeling capacity, we stand at 8,700MW. It has not been physically tested, but it has been simulated. So presently, that is where we are,” he added.

Discos still limiting power delivery

Oluwagbenga said more transmission facilities have been completed in the past six months but are yet to be included in the current capacity figure. Despite the improvements, he said the sector still faces challenges moving available electricity to consumers.

He specifically pointed to the inability or reluctance of some electricity distribution companies (Discos) to take available power as a major factor limiting electricity delivery. The sector also continues to grapple with weak distribution networks and financial difficulties.

The Federal Government has kept investing in transmission infrastructure as part of broader efforts to remove bottlenecks in Nigeria’s electricity supply industry. While generation and transmission capacity have improved, the failure of some Discos to fully absorb available power remains a key bottleneck.

What it means for the naira and businesses

The $1.4bn in multilateral funding helps reduce pressure on the federal budget for transmission projects. However, until Discos improve their ability to take and distribute power, Nigerian households and businesses may not feel the full impact of the higher transmission capacity.