The Minister of Power, Oloye Adebayo Adelabu has hinted on the reconstitution of the Transmission Company of Nigeria (TCN) within the first quarter of 2024.
In a statement yesterday, the Minister said, “The Transmission Company of Nigeria will be reconstituted in the short term, separating transmission services from system and market operations in the first quarter of this year. In the medium to long term, the transmission grid will be separated into regional grids to enable effective management.”
He also noted that the Federal Government will continue to subsidise the price of electricity tariffs for the poor in the country.
Adelabu said the government will be focusing on improving supply to consumers and providing more meters in line with President Bola Ahmed Tinubu’s electricity turnaround agenda in his New Year message.
President Bola Tinubu had, in July 2023, frozen a tariff increment for the sector approved by the Nigerian Electricity Regulatory Commission, NERC. With the freeze, the government incurred a subsidy of N600 billion, with subsidies projected to rise to N1.6 trillion in 2024.
Adelabu noted that in recognising the critical role of electricity in economic growth, the initial three months of his assumption of office focused on diagnosis, stakeholder consultation, and strategy formulation.
He added that, with a well-documented implementation plan, it was now time to take decisive action.
“Our primary focus is enhancing distribution and transmission infrastructure to minimise technical and commercial losses. The lack of liquidity continues to be a significant challenge in the electricity market.
“We are currently reviewing the implementation process of a cost-reflective tariff, while the government will continue to subsidise power supply to those who are vulnerable in our society.
“Closing the meter gap is imperative, and ongoing initiatives, including World Bank programmes and the Presidential Metering Initiatives, will gain momentum. The Ministry will intervene in distribution infrastructure, supplying transformers to communities without burdening citizens financially,” he said.
The Minister explained that rural electrification would remain a priority, with plans for solar-powered mini/microgrids and street lights. While collaborating closely with DisCos and State Electricity Boards, “our efforts will align with local needs.”
“We have reactivated the Presidential Power Initiative (Siemens Project), which will strengthen the national grid and minimise technical losses.
“We will also be implementing the Eastern and Western super grid projects to strengthen the grid and increase electricity supply to demand centres in the country,” Adelabu said.