- Nigeria’s transmission system remains the weakest link, with outdated infrastructure and high power losses despite decades of investment.
- TCN aims to increase evacuation capacity from 8,500 MW to 10,000 MW by 2027, but manual operations and limited grid protection continue to hinder progress.
- Experts call for full privatisation and market-driven reforms to attract private investment and unlock long-term improvements across the power sector.
Despite years of reform and funding, Nigeria’s electricity transmission system remains the weakest part of its power supply chain. A review of the National Integrated Electricity Policy (NIEP) exposes critical gaps in the transmission sub-sector of the Nigerian Electricity Supply Industry (NESI).
Power supply includes three key stages: generation, transmission, and distribution. The Transmission Company of Nigeria (TCN) emerged from unbundling the National Electric Power Authority (NEPA). TCN now operates the national transmission backbone.
TCN transmits power from 29 generating stations through over 200 substations. These facilities—330/132kV and 132/33kV—deliver power to distribution companies (DisCos), large users, and international customers.
Section 1.6.2 of the NIEP states that TCN operates nearly 18,000 kilometres of high-voltage lines. However, most of the Northwest and Northeast rely on single-circuit radial lines. Outages on these lines cut off entire regions. TCN also struggles with ageing equipment and 7–9 per cent technical losses.
Despite four decades of effort, Nigeria’s grid still lags. On March 4, TCN delivered a peak supply of 5,713 megawatts (MW). Its current evacuation capacity stands at 8,500 MW. TCN aims to raise this to 10,000 MW by 2027.
The NIEP and the Electricity Act 2023 call for TCN to split into three entities: a Transmission Service Provider, a System Operator, and a Market Operator. Section 1.7 of the NIEP highlights the System Operator’s reliance on manual tools, slows operations.
The System Operator lacks key ancillary services and depends on under-frequency relays to stabilise the grid. Frequent curtailments happen because of limited transmission capacity, gas shortages, and load rejections from DisCos. Weak protective systems lead to widespread blackouts.
The policy proposes licensing Independent Electricity Transmission Network (IETN) operators to address these issues. These operators would build and manage new 132kV and 330kV transmission lines.
Analysts warn that the current government-controlled structure discourages private investment. Investors want clear ownership, control, and market pricing.
TCN continues to work on several transmission upgrades and implement capital and rehabilitation projects across the country. Funding sources include ₦150 billion in local resources, $800 million through the Presidential Power Initiative, and $200 million from the World Bank. Minister of Power Chief Adebayo Adelabu continues to drive the implementation of the NIEP and national power plans.
Despite this progress, Nigeria needs massive new investment. Experts estimate the country must raise billions of dollars by 2030 to upgrade its grid, and the government alone cannot fund this.
Energy experts recommend full privatisation and deregulation. They argue that market-facing reforms will boost competition, improve services, and attract private capital. In a January 27 report published in The Guardian, Kingsley Jeremiah and Waliat Musa revealed that Nigeria borrowed $7.5 billion over 11 years to expand TCN. Yet the national grid’s output still hovers around 4,500 MW.
To achieve the NIEP’s goals, Nigeria must overhaul all parts of its power sector—generation, transmission, and distribution—and fully open them to private ownership and investment.