?TCN owed N457b of legacy and shortfall

The federal government is yet to sell off its five National Integrated Power Projects (NIPPs) because of the low prices the bidders are offering.

The government had in 2023 announced its decision to sell the plants to fund its deficit budget.

The plants are the 434 megawatts gas-fired Geregu II power plant, located in Kogi; 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State.

Others include the 563MW Odukpani power plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State.

The Transmission Company of Nigeria (TCN), Executive Service Provider (TSP), Executive Director, Engr Oluwagbenga Ajiboye, broke the news during the Three-Day TCN Media Workshop for Energy Correspondents Association in Keffi, Nasarawa State.

The theme is ?Understanding the Critical Role of TCN in Nigerian Electricity Supply Industry (NESI).His words: ?We have all known all the GenCos have been privatised except the power stations under NIPP. The government has been going up and down, forward and backwards, either to privatise or sell or not to sell.

?The Government is willing to sell, but the money being offered is not sufficient to cover the outlay of the investment.?

He also revealed that the electricity market owed TCN N457 billion as of March 2025.

According to him, TCN has discovered N217billion of its legacy debt and has opened up discussions with the Ministry of Finance Incorporated (MOFI) for the payment.

?The market owes us about N457 billion as of March, being to the market shortfall and legacy debts. We have traced N217b to the legacy debt, and we are in discussion with MOFI to pay us something out of it,? said the Executive Director.

He said there are 23 power plants with a combined available capacity of 12,000 MW in the industry.

He revealed that ageing equipment in the industry is accountable for the unavailable capacity across the distribution and generation sub-sectors.

He, however, said TCN is investing in the open market.

Oluwagbenga said TCN cannot control what the DisCos described as economic load rejection or dispatch, since the distributors have identified where customers fail to pay for energy.

He said a grid simulation had revealed the TCN?s capacity to wheel 8701MW to the DisCos, which is grappling with customers? inability to pay for it. (The Nation)

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