Funding Crunch, Right-of-Way Disputes Stall Over 100 Power Projects — TCN Tells Reps

***Says over ₦2 trillion needed to complete stalled transmission works

By Fatima Ndagi

The Transmission Company of Nigeria (TCN) has disclosed to the House of Representatives Ad-hoc Committee investigating expenditure in the power sector that acute funding constraints, right-of-way challenges, insecurity and vandalism have stalled the completion of more than 100 critical transmission projects across the country.
The Managing Director and Chief Executive Officer of TCN, Engr. Sule Ahmed Abdulaziz, made the disclosure on Tuesday while appearing before the committee at the resumed investigative hearing, describing the state of Nigeria’s transmission infrastructure as a major bottleneck to stable electricity supply.
According to Abdulaziz, TCN currently receives not more than about ₦2 billion annually in budgetary allocation, an amount he said is grossly inadequate for a utility company managing transmission projects running into billions of naira nationwide.
He explained that power transmission projects differ fundamentally from road construction, noting that partially completed transmission lines or substations are useless until they are fully completed and energised.
“Some of our projects started as far back as 2001 and are still ongoing,” he said. “These are projects that are over 20 years old. The primary challenge is lack of funding. Even when we plan to complete them within a given timeline, the funds are simply not available.”
The TCN boss revealed that the company currently has between 100 and 120 ongoing projects and would require in excess of ₦2 trillion to complete them and make them functional.
Beyond funding, Abdulaziz identified right-of-way disputes as a major obstacle, saying TCN is locked in continuous battles with states and communities over compensation and ground rent. He lamented that individuals frequently erect buildings directly under transmission lines or along designated corridors, making the siting and expansion of electricity infrastructure increasingly difficult.
He disclosed that TCN is presently faced with compensation and ground rent claims estimated at about ₦3 trillion, alleging that some state governments are influenced by consultants to use federal transmission projects as revenue-generating opportunities.
“In many cases, the compensation being demanded is higher than the actual cost of the project itself,” he said, warning that such practices are unsustainable and inimical to power sector development.
Abdulaziz also drew attention to financial pressures within the electricity value chain, revealing that electricity distribution companies (DisCos) are owing TCN more than ₦450 billion. He added that government power subsidies further weaken cash flows, making it difficult for TCN to fund operations and complete projects.
On security, the TCN chief said insurgency, vandalism and economic sabotage have continued to undermine transmission infrastructure. He told lawmakers that electricity towers have been deliberately destroyed in insecure areas, while vandals routinely target transmission equipment.
“These attacks delay projects and disrupt operations,” he said. “Some repairs take months and cost huge sums of money, yet the vandalism continues without a clear end in sight.”
Responding, Chairman of the Ad-hoc Committee, Hon. Ibrahim Al-Mustapha Aliyu, said the committee would embark on field inspections of selected power projects to independently verify their status and challenges before making recommendations to the House.
He disclosed plans to visit generation and distribution facilities and to possibly set up a small technical committee to deepen engagement with sector stakeholders.
“TCN is central to the success of the power sector,” Aliyu said. “Without strengthening transmission capacity, no amount of electricity generation can translate into reliable power supply.”
The committee chairman also noted that with electricity now on the concurrent legislative list, collaboration between the federal and state governments has become even more critical in resolving right-of-way issues and other obstacles slowing down transmission projects.
He assured that the committee would push for practical solutions and intergovernmental cooperation to unblock stalled projects and help stabilise Nigeria’s power sector.