Experts Urge FG to Unbundle TCN, Liquidate Stake in Discos

Stories by Chineme Okafor

Experts in global energy business have asked the federal government to hasten its planned unbundling of the Transmission Company of Nigeria (TCN) into three separate entities.

They also advised the government to liquidate its shareholding in the 11 electricity distribution companies (Discos) to stimulate efficiency in the country’s electricity market.

Speaking during a webinar organised and hosted by the Covenant University’s Centre for Economic Policy and Development Research (CEPDeR), the experts hinted that Nigeria needed quick and sustained solutions to her energy challenges.

The conversation was centered on ‘natural gas utilisation and energy market prospects in Nigeria’ post-COVID-19. Chair of CEPDeR, Prof. Evans Osabuohien, however explained that the goal of the webinar was to influence policy and enhance processes that will engender growth in Nigeria

During their presentations, experts such as Dr. Obindah Gershon, who co-chairs the CEPDeR, said the government could take a cue from the successes recorded with the privatisation of power generating companies (Gencos) and Discos to liquidate its remaining interests or shareholdings in the sector.

According to them, the government has considered a three-tier separation for the transmission company which is fully owned by it; they added that such separation will increase transparency and enhance efficiency in the system.

The experts explained that despite an increase in power generation capacity to above 12,000 megawatts (MW), Nigerians have consistently struggled to have adequate power supply to grow their businesses or remain productive.

This, they noted was due to the poor operations of the transmission network which causes the grid to often collapse.

“The lack of liquidity and fair pricing in the sector has also hindered investors from coming in to tackle the challenge, hence the government’s intervention with the Siemens deal. The deal which is expected to ease the bottlenecks and disruptions of transmission will take place in phases.

“The first phase will see an upgrade in transmission lines from 5,000MW to 7,000MW, then 11,000MW by 2023 and the final phase is to reach 25,000MW in 2025,” said Gershon.

Dr. Ekpen Omonbude, who heads Eraskorp Limited, said that Nigeria’s ability to generate funds have dwindled in recent years, thus forcing it to embrace more radical solutions like the removal of petrol subsidy.

Omonbude, noted that despite