Business Journal

Business

FG to Invest $1.5bn in National Transmission Power Network

The Federal Government of Nigeria said it will inject in its national power transmission network $1.5 billion by 2019.

The investment falls under a 5-year extension programme implemented by the Transmission Company of Nigeria (TCN) and which aims to increase the network’s transmission capacity to 11,500 MW.

This will be achieved through the step-by-step implementation of 59 projects. TCN has indeed increased in 2016, its capacity from 5,500 MW to 6,000 MW. It now wishes to raise intermediate transmission capacities from 7,500 MW in 2017, to 8,200 MW in 2018.

Cost for associated works was estimated to $7.5 billion. Besides government’s contribution of $1.5billion, the TCN hopes to secure around $3.4 billion from international institutions, and via loans and subsidies. It will add to these, $2.6 billion from its own revenues.

The various contributions are part of a collective effort by actors of the Nigerian power sector to improve it.

To this end, the Nigerian Bulk Electricity Trading and the Central Bank of Nigeria are currently in talks for an additional funding of about $547 million which will be used to boost revenue of power developers that serve the nation.

Nigeria recently lost its position of largest African economy, and presently produces around 4,100 MW for an estimated demand of 12,000 MW.

Gwladys Johnson

To Top