The Transmission Company of Nigeria (TCN) has raised concerns over the N457 billion debt owed by electricity distribution companies (DisCos) and other power sector operators in the country.
The Managing Director of TCN, Engr. Sule Abdulaziz, disclosed this during a press briefing in Abuja on Wednesday. He stated that the accumulated debt has severely impacted the company’s ability to maintain and expand the national grid, leading to frequent power outages and inefficiencies in electricity supply.
Abdulaziz explained that the debt includes unpaid transmission service charges, grid maintenance costs, and other operational expenses. He noted that despite repeated appeals and negotiations, many DisCos have failed to meet their financial obligations, worsening liquidity challenges in the power sector.
The TCN boss warned that if the debts remain unsettled, it could further destabilize Nigeria’s electricity supply chain, affecting both businesses and households. He called on the Nigerian Electricity Regulatory Commission (NERC) and other relevant authorities to enforce stricter payment regulations to ensure operators comply with their financial commitments.
“The power sector cannot function optimally when key players fail to pay for services rendered,” Abdulaziz said. “This debt is crippling our operations and limiting our ability to invest in critical infrastructure upgrades.”
He also urged the Federal Government to intervene, suggesting that policies should be put in place to hold defaulting operators accountable. Additionally, he proposed the implementation of a more sustainable payment structure to prevent future accumulation of debts.
In response, the Association of Nigerian Electricity Distributors (ANED) acknowledged the debt but cited challenges such as low tariff rates, energy theft, and non-payment by customers as major hindrances to their financial stability. ANED’s Executive Director, Sunday Oduntan, appealed for a comprehensive review of the electricity pricing structure to reflect current economic realities.
Meanwhile, energy analysts have warned that the growing debt in the power sector could deter potential investors and further weaken Nigeria’s electricity infrastructure. They called for urgent reforms, including improved metering, stricter revenue collection mechanisms, and better regulatory oversight.
The TCN reiterated its commitment to ensuring grid stability but emphasized that without prompt debt recovery, sustaining transmission operations would remain a challenge.
The Nigerian Electricity Supply Industry (NESI) continues to grapple with financial and operational hurdles, raising concerns about the sector’s long-term viability. Stakeholders are urging collaborative efforts between the government, regulators, and operators to address systemic issues and improve power supply nationwide.
