Calls to restructure Nigeria’s transmission company thicken
Electricity consumers in Nigeria are intensifying calls for the restructuring of the Transmission Company of Nigeria (TCN) as Manitoba, the manager of Nigeria’s transmission lines, relinquishes control after the expiration of its contract.
The dismal performance of TCN, which remains the weakest link in the power sector, incapable of distributing above 5000mw regardless of the amount generated and supplied necessitated these calls.
Electricity distribution companies get miserly power allocations. Ikeja Electric receives a 300mw, Kaduna Electric gets 220mw, while Port Harcourt disco receives less than 140mw daily.
Nigerians have taken to social media platforms calling for total restructuring of TCN and the rules governing the power sector. They call for setting up a power company that generates and distributes power, and question the assignment of geographical areas and enforcement of directive to meter customers.
“They should be given universal licence to play in any segment of the power sector! Break the monopoly,” according to a twitter user that goes by the name D Pharma.
He further said, “There shouldn’t be disco and genco, just power company that can generate and sell.”
“They should provide the meters and clamp down on energy theft,” said another twitter user who goes by the name Regietron.
Joseph Woghiren said, “Someone should tell me the use of NERC with the nonsense the Discos and Gencos are doing and no one is talking,”
Using the #opennerc social media savvy Nigerians voiced their concerns about the operation of the discos, gencos and the regulator.
Canadian firm, Manitoba Hydro International (MHI) who had a management contract at TCN, on July 29 handed over the management of the company to Nigeria.
In a statement signed by TCN’s general manager (public affairs), Seun Olagunju, the new management assured “our patrons that all contracts and agreements entered into by TCN in the period remain valid and all financial obligations from our development partners are still intact.”
TCN further noted that during the four year MHI management period, their Nigerian counterparts, who now constitute the new management team, worked closely with the 8-man MHI team and are therefore well equipped to properly administer the affairs of the company.
MHI Management Contractors won the bid to manage TCN in April 2012, for an initial 3-year period, subject to renewal. The contract was signed on 16th June 2012, while MHI commenced work on the 1st of July 2012. The three-year contract expired in 2015 and was renewed for another one year up to the end of July 2016.
The company has been enmeshed in troubles with the legislatures often questioning its contract. Manitoba’s contract was hurriedly renewed last year when it ended and the government realised it has no plans on what to do next. Industry watchers say another last-ditch renewal isn’t ruled out here.
It is uncertain who will be running the TCN next month when the Manitoba contract ends. But we note that the contract initially expired last July and the government hurriedly extended it by a year in order to buy itself more time to decide what to do next. So, another last-ditch renewal isn’t ruled out here.
The government may also consider running the firm for some time as a stopgap and then concession it to private investors later. One report says the State Grid Corporation of China has shown interest. It should be noted that Nigeria might lose a $300 million World Bank grant if TCN falls back to government management. A permanent government takeover is unlikely.