The Transmission Company of Nigeria (TCN) has disclosed that it is currently owed a staggering N457 billion for services rendered within the Nigerian Electricity Supply Industry (NESI) as of March 2025. This revelation underscores the intensifying liquidity crisis gripping Nigeria’s already fragile power sector.

TCN’s Managing Director, Mr. Sule Abdulaziz, made the disclosure during the opening session of a capacity-building workshop for energy journalists held in Keffi, Nasarawa State, on Wednesday. Represented by Mr. Oluwagbenga Ajiboye, Executive Director of Transmission Service Provider at TCN, Abdulaziz highlighted that the debt comprises N217 billion in legacy debt and N240 billion in recent unpaid services.

Growing Debts Threaten Stability of Power Supply Chain

Despite the massive outstanding sum, Abdulaziz said the TCN has made substantial improvements in its operational efficiency. He revealed that the company’s electricity wheeling capacity — the ability to transport generated electricity through its transmission lines — has now reached 8,701 megawatts.

However, he warned that persistent funding shortfalls, coupled with challenges such as vandalism of critical infrastructure, continue to pose major obstacles to achieving optimal performance within the sector.

Abdulaziz emphasized the need for consistent strength across the electricity value chain, noting that:

“The electricity value chain must not be broken. Its strength must be uniform to successfully deliver electricity to consumers.”

Infrastructure Idle Due to Transmission Gaps

One of the pressing issues raised at the workshop was the alarming number of unutilised and idle substations, despite significant investments in infrastructure. Mr. Aminu Tahir, General Manager, Project Coordination at TCN, explained that many newly completed substations have not been commissioned because they are not connected to transmission lines.

Tahir attributed the delays to right-of-way challenges, including disputes over land acquisition, compensation claims, and resistance from communities. These complications have slowed or halted transmission line projects, limiting the potential benefits of newly completed facilities.

International Support and Funding Interventions

To bridge the infrastructure deficit, TCN has secured funding and technical assistance from international development partners. These include:

• World Bank

• French Development Agency (AFD)

• African Development Bank (AfDB)

• Japan International Cooperation Agency (JICA)

Tahir noted that these funds are targeted at expanding transmission capacity, modernizing infrastructure, and resolving bottlenecks that currently hinder efficient electricity delivery.

Enhancing Media Collaboration

TCN’s General Manager of Public Affairs, Mrs. Ndidi Mbah, also addressed journalists at the event, stressing the importance of bridging the information gap between the power utility and the public.

“It is very important to us at TCN for you to understand us well and report us better,” Mbah said.

“This workshop provides an opportunity for journalists to engage with TCN experts and get firsthand information on the company’s activities.”

Mbah highlighted that accurate and informed media coverage is essential for public awareness, policy accountability, and transparency in the power sector.

Sector-Wide Liquidity Crisis Deepens

TCN’s debt burden is only a fragment of the broader liquidity crisis plaguing Nigeria’s power industry. The Federal Government owes generation companies (GenCos) over N4 trillion, largely accumulated from electricity already supplied to the national grid but not paid for due to inefficiencies in billing and collections.

In April 2025, the government pledged to begin settling some of this debt to restore confidence in the sector. However, no significant payments have been confirmed to date.

In May, the Niger Delta Power Holding Company (NDPHC) also lamented that it is owed N600 billion by the Nigerian Bulk Electricity Trading (NBET) Plc, which is supposed to act as the financial intermediary between generation and distribution companies. The NDPHC warned that this debt is severely crippling its operations, and by extension, limiting the nation’s power supply.

What This Means for Nigerians

For millions of Nigerian households and businesses, the implications of this debt crisis are enormous. Without resolution:

• Power supply may remain unreliable, with continued load shedding and blackouts.

• Expansion of infrastructure may stall, despite international funding.

• Tariff reviews may become inevitable, as operators seek to recover costs.

TCN and other players have consistently called on the government to prioritise settlement of outstanding debts, enforce payment discipline across the value chain, and accelerate sector reforms to ensure sustainability.

Conclusion

The disclosure of a N457 billion debt owed to TCN exposes the fragile foundation of Nigeria’s electricity industry. Despite improvements in capacity and access to foreign funding, the inability to ensure timely payments and clear systemic inefficiencies remains a critical challenge.

As TCN pushes for increased investment and collaboration, both from within and beyond government, the urgent need for coherent policies, infrastructure alignment, and stakeholder accountability cannot be overstated. Only through a holistic fix can Nigeria’s power sector transition from a struggling network to a reliable engine of national development.