.. laments N600bn ground rent demands from state governors
By Stella Odueme
The Managing Director of the Transmission Company of Nigeria, TCN, Engr Sule Abdullaziz has presented the company’s scorecard to members of the House of Representatives Committee on Power who were on oversight functions, telling them that TCN has upgraded the National Transmission Grid capacity by 2150MVA, despite huge challenges during the first half of 2024.
The MD lamented the demand of payment for ground rent for TCN substations and installations by almost the 36 state governors dating back to the 1970s which he stressed has been a major burden to the company already battling with financial challenges.
In his presentation, Engr Abdulaziz disclosed that over 25 power transformers were installed during the first half of 2024 thus upgrading the country’s transformer capacity by 2150MVA.
“We have a lot of letters from almost all the 36 state governors demanding for ground rents of our substations and installations and these ground rents have been coming since the 1970s. At that time, remember that there was no TCN yet they calculate everything and send to TCN. What we have now is over N600bn which TCN cannot pay,” he cried out.
The MD highlighted some of the challenges being faced by TCN as payment for compensation for acquisition of right of ways for its projects across the country, aging infrastructure and equipment, dependence on manual operations as well as vandalism of its transmission infrastructure, lack of modern tools such as helicopters and drones to effectively police its transmission lines and critical infrastructure amongst others.
He equally expressed concerns about delay by the Federal Ministry of Finance in the payment of its counterpart funding on critical projects. Also of great challenge according to the MD, is the enforcement of Value Added Tax VAT on its offshore equipment, issues of port clearance creating further hindrance in procurement processes and execution of TCN projects.
He outlined the solution to the teething challenges facing TCN to provisions of adequate funding by the Federal Government through the Federal Ministry of Finance to enable it acquire right of ways to complete critical projects as well modern technology to effectively secure these infrastructures, among others.
He also sought the interest of the Minister of Finance on VAT waiver on all power equipment at the nation’s ports for timely delivery of critical projects.
Engr Abdulaziz appealed to the committee to prevail on the National Assembly to increase funding for TCN to adequately carry out its functions.
He also appealed to the state governors to partner TCN in the issues of vandalism and huge ground rent.
The chairman of the House Committee on Power, Hon. Victor Nwokolo who sought clearance on the issues on Osogbo transmission line, commended TCN for its achievements.
He said the committee will use the instrument of the law to provide soft landing on the issue of ground rent payment.
The chairman expressed concerns about the state of technology in the national control centre operating without a functional SCADA system.
