Nigeria's Electricity Export to Benin, Togo: TCN Boss Clarifies National Grid Issues

TCN Chief Addresses National Grid Woes Amidst Regional Power Supply

“If there is a system collapse, it doesn't mean all the problems are from TCN...”

Nigeria's TCN Chief, Sule Abdulaziz, discusses electricity challenges, citing outdated infrastructure and vandalism, but asserts Nigerian electricity is relatively affordable.

Nigeria's Transmission Company (TCN) ensures uninterrupted power supply to Togo, Benin, and Niger Republic, yet the country struggles with regular electricity, TCN CEO Sule Abdulaziz acknowledged.

“We supply Togo, Benin, and Niger. They get power from Nigeria on a 24-hour basis, and they are paying for it,” Abdulaziz said on Sunday.

When asked why millions of Nigerians do not enjoy uninterrupted power, he said: “Nigerians are getting 24-hour supply, but it's not everyone. Those in Band A receive 20 hour to 22 hours of power supply daily.”

Abdulaziz, the Managing Director and CEO of the Transmission Company of Nigeria (TCN), is confident that Nigeria can achieve consistent electricity supply nationwide within the next few years. This optimism is fueled by the government's plans to unbundle the TCN into two separate entities, potentially leading to a more efficient and reliable national grid. The creation of an Independent System Operator (ISO) to take over market and system operations functions from TCN is a significant step towards this goal. With the Nigerian Electricity Regulatory Commission (NERC) activating provisions of the Electricity Act, the stage is set for improved transmission services and system operations.

“I am telling you we can get consistent power supply in less than five years. The new minister is looking at the problems; he is not doing cosmetic showdowns,” he said, while emphasising that constant national grid collapses do not necessarily originate from the TCN.

“If there is a system collapse, it doesn't mean all the problems are from TCN, it can be from generation, it can be from transmission it can be from distribution,” Abdulaziz explained.

“Some of these can also come from disaster. You cannot say it is the fault of the TCN just like that. TCN are in charge of managing the grid.”

Abdulaziz, the Managing Director and CEO of the Transmission Company of Nigeria (TCN), shed light on the key differences between TCN and its predecessor, the National Electric Power Authority (NEPA). Essentially, TCN took over the transmission functions of NEPA, which was disbanded due to inefficiencies.

The TCN's primary role is to manage the national grid, ensuring efficient transmission of electricity across Nigeria. In contrast, NEPA handled multiple responsibilities, including generation, transmission, and distribution, which often led to management overlaps and inefficiencies.

To improve the power sector, the Nigerian government has initiated reforms, including unbundling the TCN into separate entities to enhance efficiency and competitiveness. This move aims to attract private investments and promote a more liberalized market.

Reforms:

Unbundling of TCN: Separating transmission services from system operations to improve focus and efficiency.

Establishment of Independent System Operator (ISO): Managing electricity demand and supply, ensuring reliable delivery.

Private Sector Participation: Encouraging investments to boost competitiveness and efficiency.

“People have to understand the difference between the TCN and NEPΑ. When we were NEPA, we were the ones doing the generation, transmission, distribution and marketing,” he said.

“But now we are only doing one leg which is transmission. But there could be issues in all other sectors which are the generation and the distribution. But people only know NEPA and they think TCN is NEPA and they put the blame on TCN.”

The Transmission Company of Nigeria (TCN) chief, Sule Abdulaziz, has highlighted the pressing issue of outdated infrastructure in the country's power sector. Much of the equipment used by TCN is 40 to 50 years old, making it unrealistic to expect optimal performance. This aging infrastructure is a major contributor to the persistent power grid failures and transmission capacity constraints that plague Nigeria.

Abdulaziz emphasized that Nigeria needs a transmission capacity of about 15,000 megawatts to meet growing energy demands, but TCN can currently only transmit around 8,100 megawatts. The company is working to address these challenges through various initiatives, including upgrading and maintaining existing infrastructure, implementing new projects to expand capacity, and enhancing security measures to protect assets from vandalism.

Some of the specific challenges facing TCN include:

Aging Infrastructure: Much of the equipment is outdated, leading to frequent failures and reduced transmission capacity.

Vandalism: Malicious damage to power infrastructure, particularly transformers, results in significant financial losses and endangers lives.

Funding Constraints: TCN faces difficulties in securing necessary funds for infrastructure upgrades and project completion.

Despite these challenges, TCN is exploring solutions, such as:

Modernization: Investing in new technologies, like the SCADA system, to improve transmission efficiency and reduce system disturbances.

Collaboration: Partnering with private companies and government agencies to secure funding and support for infrastructure upgrades .

Capacity Expansion: Implementing projects to increase transmission capacity and meet growing energy demands.

“Most of the equipment we use is over 50 years old,” he lamented.

Abdulaziz, the Transmission Company of Nigeria (TCN) chief, believes that electricity in Nigeria is relatively affordable. This statement comes amidst the country's ongoing efforts to improve its electricity distribution sector, with the World Bank approving $500 million to support Nigeria's electricity distribution companies.

However, it's worth noting that Nigeria still faces significant challenges in providing reliable power to its citizens, with 85 million people lacking access to grid electricity. This has resulted in annual economic losses estimated at $26.2 billion, equivalent to about 2% of the country's GDP.

Despite these challenges, the Nigerian government has set ambitious targets to increase electricity access and reduce greenhouse gas emissions. The country aims to reduce its emissions by 20-45% by 2030 and become a net exporter of oil by 2020.

Initiatives to Improve Electricity Access:

Nigeria Distribution Sector Recovery Program (DISREP): Aims to improve service quality, financial, and technical performance of distribution companies.

Power Sector Recovery Operation (PSRO): Supports the development of regulatory guidance on climate-resilient infrastructure.

Gas Masterplan: Seeks to increase gas production and reduce gas flaring.

These initiatives demonstrate Nigeria's commitment to addressing its energy challenges and providing affordable electricity to its citizens.

He said: “Electricity is now expensive in Nigeria, we feel it is expensive because we are getting it at a cheaper price. If you go to other African countries, go to Burkina Faso, Senegal, Niger; Nigeria is cheaper.”