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The Transmission Company of Nigeria (TCN) has secured more than $1.4 billion in loans and grants from multilateral development partners to rehabilitate ageing infrastructure and expand the country’s national electricity transmission network.
The financing is expected to support the deployment of additional transmission infrastructure as Nigeria works to improve the movement of electricity from generation companies to distribution companies and ultimately increase the reliability of power supplied to homes and businesses.
TCN disclosed the development through its Executive Director of Transmission Service Provider, Ajiboye Oluwagbenga, who spoke at a training workshop in Keffi, Nasarawa State.
89 Transformers Add 8,500MVA Capacity
According to Oluwagbenga, TCN’s ongoing infrastructure programme combines internally funded projects with multilateral development financing.
A major component of the programme has been the installation of 89 power transformers across the transmission network.
The projects have added more than 8,500 megavolt-amperes (MVA) of transformation capacity, strengthening TCN’s ability to move bulk electricity to distribution companies nationwide.
The company has also deployed 300MVA transformer units at strategic locations, including Katampe, Lekki, Ikeja West and Akangba, to address transmission and load constraints in areas experiencing significant electricity demand.
TCN said the targeted investments are intended to ensure that additional transformation capacity translates into stronger grid resilience and improved ability to deliver electricity during peak demand periods.
World Bank, AfDB, JICA, AFD Back Projects
The financing has been secured through partnerships with major international development institutions and financiers.
TCN identified the World Bank, African Development Bank (AfDB), Japan International Cooperation Agency (JICA) and Agence Française de Développement (AFD) among the institutions supporting its transmission infrastructure programme.
The combination of loans and grants provides funding for projects aimed at rehabilitating existing assets while expanding the network’s ability to handle additional electricity.
The investments come as Nigeria continues to grapple with challenges across its electricity value chain, with limitations in generation, transmission and distribution all affecting the reliability of power supply.
8,700MW Capacity Yet to Be Fully Tested
TCN said the investments have substantially increased the network’s capacity to transmit electricity across the country.
However, the company acknowledged that the full 8,700MW capacity has not yet been physically tested.
Oluwagbenga explained that TCN has deliberately adopted a conservative approach in assessing the network’s available capacity, noting that additional transmission facilities deployed within the preceding six months had not yet been incorporated into the capacity figure.
This means the network could have additional operational capacity beyond what is currently reflected in TCN’s assessment.
Grid Expansion Comes at Significant Cost
The transmission company acknowledged that upgrading and expanding the national grid requires substantial financial resources.
The latest financing therefore represents an important component of Nigeria’s longer-term effort to strengthen the electricity infrastructure connecting power generation with distribution networks.
The deployment of transformers and other transmission assets is expected to ease bottlenecks that can prevent available generation from reaching areas where electricity demand is highest.
However, increasing transmission capacity alone does not automatically guarantee uninterrupted electricity supply. The wider electricity system also depends on adequate generation, distribution infrastructure, gas availability, maintenance and the financial sustainability of the sector.
Next Phase Focuses on Network Reliability
TCN’s latest investments indicate a continued shift toward replacing ageing equipment while simultaneously expanding the network to accommodate growing electricity demand.
The company is relying on both domestic funding and international development financing to accelerate that process.
For Nigeria’s power sector, the key test will be whether the additional infrastructure can translate into measurable improvements in the amount of electricity reliably delivered to distribution companies and, ultimately, consumers.
With more than $1.4 billion in multilateral financing now supporting the programme, TCN is betting that a stronger transmission network can remove some of the bottlenecks that have historically limited the country’s ability to fully utilise available power generation capacity.
