The Transmission Company of Nigeria (TCN) faces critical challenges in enhancing the national grid’s capacity, with ageing infrastructure and underfunding as significant hurdles.
In an exclusive interview with The Electricity Hub, Mr Modibbo Umar, Power Sector/ Energy Analyst at the Nigerian Electricity Regulation Commission (NERC), illuminates these challenges and the steps to address them.
According to Mr Umar, a lot of the transmission equipment was installed between 1983 and 1995, with years of underinvestment hampering TCN’s ability to modernise and expand its network. Additionally, operational inefficiencies, load rejection by distribution companies (DisCos), and vandalism of critical infrastructure continue to undermine grid stability.
To counter these setbacks, TCN has launched the Transmission Rehabilitation and Expansion Program (TREP), which aims to replace outdated equipment and expand transmission lines.
Financial support from international partners like the World Bank and the African Development Bank (AfDB) is helping to accelerate these upgrades, while the introduction of modern Supervisory Control and Data Acquisition (SCADA) systems is enhancing real-time grid monitoring. Security measures have also been reinforced to protect vital infrastructure from theft and vandalism.
Government Boosts Rural Electrification
Meanwhile, Nigeria’s government is making strides in expanding power distribution to underserved rural communities through initiatives like the Rural Electrification Agency (REA) projects. Programs such as the DARES initiative, backed by the World Bank, are extending distribution lines and improving electricity access in remote areas. The Haske Solar plant in Kano is one of the key projects integrating renewable energy into the grid, reducing reliance on diesel generators.
This push for rural electrification yields significant socio-economic benefits, particularly for small businesses, educational institutions, and healthcare facilities in underserved regions. The Nigerian Electricity Regulatory Commission (NERC) is also playing a crucial role in reducing technical losses and driving improvements in the performance of DisCos, further strengthening power distribution efforts.
Challenges in Renewable Energy Integration
Despite global momentum towards renewable energy adoption, Nigeria has yet to integrate solar and other renewables fully into the national grid. While the World Bank funds studies to explore renewable integration, only the Haske Solar plant has been connected. This limited progress underscores the urgent need for accelerated efforts to upgrade infrastructure and expand renewable energy capacity to improve grid stability and boost electricity access nationwide.
DisCos Face Regulatory Hurdles
Distribution companies in Nigeria are grappling with regulatory challenges that affect their ability to deliver reliable electricity. Key issues include inadequate tariffs, a widening metering gap, electricity theft, and grid instability. Political resistance to tariff adjustments has further complicated efforts to make the sector financially viable.
In response, NERC has introduced reforms like the Service-Based Tariff (SBT) system and the National Mass Metering Program (NMMP) to close the metering gap and improve revenue collection. The regulatory body continues to engage stakeholders and enforce compliance while promoting policies to incentivise investment in the electricity distribution sector.
In conclusion, the challenges facing Nigeria’s transmission and distribution networks are multifaceted, stemming from ageing infrastructure, underfunding, regulatory hurdles, and operational inefficiencies. While significant efforts are underway through initiatives like the Transmission Rehabilitation and Expansion Program and rural electrification projects, the integration of renewable energy remains a crucial yet underdeveloped aspect of the national grid.
The role of the Nigerian Electricity Regulatory Commission (NERC) in enacting reforms and facilitating investment is pivotal to achieving a more resilient and efficient power sector. However, the success of these efforts hinges on sustained investment, political will, and strategic collaboration with international partners. Through these combined efforts, Nigeria can hope to meet its growing energy demands, enhance grid stability, and ensure equitable access to electricity for all Nigerians.