TCN Needs N2.78tn To Execute 149 Power Projects – Minister

The Minister of Power, Adebayo Adelabu Tuesday said the Transmission Company of Nigeria, currently require a total sum of N2.779tn to execute 149 projects that are scattered across the country, many of them at different stages of completion.
This is as Adelabu said the second phase of the 12,000 MegaWatts Presidential Power Initiative, otherwise known as the Siemens project will commence within the first three months of 2025.
The minister said the government is planning to proceed with the project due to 95 per cent completion of the pilot stage in 2024.
Adelabu said this when he appeared before the two chambers at the National Assembly for the Ministry’s 2025 budget presentation and defence, a statement signed by the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji.
On December 1, 2023, the Governments of Nigeria and Germany signed the Presidential Power Initiative agreement to inject 12,000 MegaWatts of electricity into the national grid.
The signing was presided over by the leaders of both countries, President Bola Tinubu of Nigerian and German Chancellor Olaf Scholz, on the sidelines of the United Nations Climate Change Summit, COP28, in Dubai, the United Arab Emirates.
The minister who also provided updates on power said the project will energise power supply as it would involve the construction of five substations across the nation and permanently address the issue of grid collapse.
He said, “I am happy to appear before today to address you on what we have been able to achieve last year and what is expected of us as a ministry this year.
“For the TCN alone, we will need about N2.779 trillion to enable us to execute the about 149 projects we are currently engaged in all over the country. Our total budget as a ministry is not even up to this but as the saying goes that half bread is better than none.
“I’m telling you so that you can be aware of the kind of money that is needed in the ministry for us to address our electricity challenges.
“We need your cooperation and collaboration in achieving the mandate of Mr President in electricity supply to Nigerians”, the Minister said.
Speaking further on the Siemens project, Adelabu said the substations to be built across the country would address the nation’s fragile power infrastructure, occasioned by obsolete equipment.
“The Federal Government is fully determined to address these challenges and issues that have been blocking our progress in our effort to provide electricity to Nigerians and our consumers.
“Of particular note is the grid collapse, which has to do with the obsolete and outdated equipment around our power stations.
“To practically address this, the Siemens project will come on board in the first quarter of this year. We have almost concluded the take-off of the project, and it will involve building five substations across the country.
“This will energise our supply so that the issue of grid collapse will be a thing of the past. By next week, we will begin the contracts for the substations to come on board”, Adelabu said.
He also informed the lawmakers of the need to address the issue of vandalism as it concerns the electricity assets across the country.
“One other critical thing I want to draw your attention to is the issue of vandalisation as it concerns our assets. We must sensitise our people against this act. We must be involved in serious advocacy on this issue. We must jointly address the issue of protecting the power assets. Damage to one is damage to all, especially the transmission assets; they are so interwoven, and damage to one is damage to all.
“In this case, we need the cooperation and collaboration of all our security agencies, the Army, the Airforce, the Navy, the Police and the Civil Defence. But more importantly, we need the cooperation and collaboration of the Office of the National Security Adviser. We are not just dealing with those who steal cables but bandits, who use dynamite to blow up towers and transmission lines.
“There is no amount we can vote for this either as a ministry or in TCN that can solve this. Our transmission line from Shiroro – Mando – Kaduna, which was attacked by these bandits and which we are yet to put back, was done in a manner as if we were in a war situation. We did not budget for what was spent to put what we could together. How do we manage the protection of these assets? This must be our joint concern, so we are calling for your cooperation and collaboration in addressing this security challenge facing us in our power assets”, the Minister said.
“I want to assure you that on our part, the Federal Government is fully ready to address the issues hindering the electricity sector this year, 2025 and we hope the year will be a better one for us in the ministry. As I said before, I want to reiterate that we will focus on this Presidential Power Initiative to ensure that our grid is stable and does not suffer collapse and when it does, within the very shortest time, it is restored and brought back on board.
The minister also disclosed that the ministry will be working with local contractors in their procurement plans for the year.
“I also want to let you know that we are encouraging our local contractors to provide our materials, such as cables, poles and so on. This will help us to conserve our foreign exchange and reduce the transaction cycles we often face while we import. This will save us time in our procurement this year”, he said.
Earlier in his presentation, the minister revealed that when he was appointed, the generation was just about 4100 megawatts and within a year, the capacity increased by over 1000 megawatts.